IOOF points to modest RC cost exposure
IOOF has signalled to the market that its maximum exposure to non-systemic issues raised in the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services industry could be as low as $5 million to $10 million.
In a briefing released to the Australian Securities Exchange (ASX) today, IOOF pointed to the work it had done as a result of the Royal Commission including around deceased estates and product and advice.
Outlining the company’s position in the briefing, IOOF managing director, Christopher Kelaher said the company had completed a review of 2000 client files based on fee streams post-mortality and that “no material issues” had been identified.
The briefing said that where issues had been identified they had been “adviser based” and that as at July, process improvements had been implemented.
The briefing then said that the company was continuing to look at its corporate super plan services fees on the basis of issues raised around National Australia Bank/MLC during the Royal Commission and had investigated files, fee disclosures and contracts on a sample basis and had identified no material issues.
It said that with respect to advice, continuing monitoring was underway with a key focus on audit and individual files, it said that around 5000 files were being reviewed per year and that this had not highlighted any systemic issues.
The review said no material issues had been identified to date.
It said on this basis, a prudent estimate of maximum exposure based on non-systemic issues was between $5 million and $10 million.
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