How BT’s pricing impacted IOOF



IOOF has revealed the pricing tensions which emerged to test its platform relationship with BT.
IOOF has revealed the impact on the profitability of its wealth business when BT reduced its fees last year.
BT announced in July, last year, that it was cutting its superannuation platform fees – something which coincided with the hearings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
IOOF said it had a significant third-party administration arrangement with BT and that when BT reduced its fees on an equivalent offering, it left IOOF “out of market on price, and therefore exposed to outflow to BT, temporarily”.
Elsewhere in its explanation, IOOF said that in the financial advice segment of the business, price competition from BT and the need to re-set fees in response, “was dilutive of segment margin overall”.
Recommended for you
At least two-thirds of ETF flows are understood to be driven by intermediaries, according to Global X, as net flows into Australian ETFs spike 97 per cent in the first half of 2025.
Inflows for the first half of 2025 for GQG Partners stand at US$8 billion, but the firm has flagged fund underperformance could be a headwind for future flows.
BlackRock has announced its plan to acquire real estate investment firm ElmTree Funds which will be integrated into its new private financing solutions business.
With share price growth of 45 per cent for FY25, Australian Ethical has shared why it believes the firm has done so well compared to its active peers.