IOOF claims protection on ANZ Royal Commission fall-out
IOOF Limited has gone to the trouble of pointing out that it is largely protected from any Royal Commission fall-out impacting the company’s acquisition of ANZ’s wealth management businesses.
In an announcement to the Australian Securities Exchange (ASX) IOOF pointed out that contractual protections existed “in respect of certain pre-completion conduct, subject to certain limitations”.
“For example, ANZ has provided various indemnities in favour of IOOF in relation to liability arising from a claim by a client made within five years of completion relating to various types of adviser pre-completion conduct, misconduct or non-completion conduct, misconduct or non-compliance,” the ASX announcement said.
The declaration to the ASX came as IOOF managing director, Christopher Kelaher reported the company had achieved positive net flows of $1 billion in funds under management, administration or advice (FUMA) for the third quarter, with total FUMA as at 31 March totalling $118.8 billion and funds under supervision standing at $33.8 billion.
“IOOF’s advice-led business has attracted new advisers and provides the foundation for our strong flows,” he said. “Open architecture shows our commitment to offering choice in wealth management services for all Australians and clearly differentiates us from other industry participants.”
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
