IOOF has confirmed that it has been late to the party on financial adviser client remediation but expect to begin the process early this year, having identified 67 advisers it regards as being “in the higher-risk category”.
The company revealed its position in an answer to a question on notice received during the hearings of the House of Representatives Standing Committee on Economics as part of its review into the superannuation sector.
Despite earlier having referenced provisioning for a remediation bill in the order of $223 million, IOOF acknowledged that it had not actually commenced making remediation payments because it was still collecting and assessing the data.
“We have directed significant resources towards remediation and have engaged independent experts (one for investigations and another for remediation) to develop and implement (and therefore expedite) the remediation process,” the company’s answer said.
It said this would “help ensure we achieve the best outcome for our clients”.
“Until we complete our analysis, it would not be prudent to estimate how many clients are impacted,” it said.
IOOF’s answer said that all analysis to date had been based on adviser numbers, “where we identified 67 advisers in the higher-risk category”.
“We expect remediation payments to begin in early 2020,” it said.