No lift in advice remediation provisioning by IOOF
IOOF believes the $223 million client remediation provisioning it announced in August last year is going to hold good.
The company announced no new provisioning for remediation at the same time as announcing a first reduced half net profit after tax of $115 million on the back of $1.4 billion in total inflows and a reduced fully franked interim dividend of 16 cents per share.
With respect to provisioning, it said further sampling and investigation had “reaffirmed the appropriateness of this original estimate”.
The company also confirmed completion of the ANZ Pensions and Investments business at a renegotiated sale price of $825 million – a reduction of $125 million.
IOOF chief executive, Renato Mota said this had extended the company’s sale and reach with 11 new advice practices joining the advice business which saw advice channel funds under management and advice increase by $985 million to $76.6 billion.
He said IOOF was now the second largest advice business with 1,443 advisers and the fifth largest platform providers by funds under administration.
“We are building long-term scale benefits in our business and we are committed to the reinvention of advice,” he said.
Recommended for you
As the first quarter of 2024 comes to a close, Money Management looks back on the corporate regulator’s bans and AFSL cancellations in the financial advice sector.
Insignia Financial is holding ‘relatively steady’ onto its rank as Australia’s second-largest financial advice licensee after the Godfrey Pembroke exit but Count is hot on its heels.
Liberal senator Slade Brockman has said the government needs to have a “cold hard look” at the level of regulation in the financial advice space and the costs of running a business.
FAAA chief executive, Sarah Abood, has warned changes in the first tranche of the QAR legislation around advice fees documentation could create more work for advisers rather than less.