IOOF has announced that it has designed and implemented all recommendations “save for a very small number which will soon be completed”, following an independent review of its breach reporting and research divisions by PwC.
IOOF said it had kept the Australian Securities and Investments Commissions (ASIC) and the Australian Prudential Regulation Authority (APRA) informed of its progress and outcomes of the review, and said it would implement all recommendations.
The update on IOOF’s progress on the implementation of recommendations came on the same day it released its 2016 interim financial results, reporting an underlying net profit after tax of $95.4 million, up 18 per cent the prior corresponding year.
Statutory net profit after tax stood at $134 million, up 118 per cent on the previous year.
The firm also reported the takeover of Shadforth Financial Group last year had delivered $11.3 million in pre-tax cost synergies, up from $1.7 million from the previous year, with the firm saying it was on track to deliver over $30 million in total synergies by the end of the financial year, 2016.
IOOF managing director, Christopher Kelaher, said the Shaforth integration had been successful in diversifying the firm’s revenue base and adapting to another business, but said current market conditions posed challenges for the firm.
“The current volatility in domestic and international equities markets creates challenges for our industry and the economy more broadly, but the longer term industry fundamentals remain positive.”
