IOOF has acknowledged the outflow of $1.4 billion from it financial advice businesses owed in large measure to the exit of self-employed advisers.
In an update released to the Australian Securities Exchange (ASX) today, IOOF pointed to outflows of $2.1 billion from 53 advisers departing IOOF’s self-employed advice businesses “as envisaged under IOOF’s Advice 2.0 program”.
“As flagged at our half-year results, IOOF expect approximately 140 advisers will exit the business as part of its plans to improve the quality and sustainability of the self-employed advice model,” the update said.’
It then said that inflows of $0.7 billion had been achieved from new self-employed advisers joining IOOF licensees and organic flows.
Commenting, IOOF chief executive, Renato Mota said that the company was transforming towards a sustainable long-term advice model.