APRA issues IOOF super entities with ‘show cause’ notice

IOOF has confirmed to the Australian Securities Exchange (ASX) that it has received a “show cause” notice from the Australian Prudential Regulation Authority (APRA) with respect to the conditions placed on its license in December, last year and the status of its superannuation businesses.

In an announcement released to the ASX it said that license conditions had been imposed on its three APRA-regulated entity subsidiaries and the show cause notice related to the findings of an independent reviewer appointed by IOOF to help the company meet those conditions.

The company said that the APRA-regulated subsidiaries had received a show cause notice from APRA which reflected the Independent Reviewer’s report and also indicated that the regulator had formed the preliminary view that the entities had breached their license conditions relating to the Office of the Superannuation Trustee.

It said that APRFA had further informed the entities that it was considering issuing directions to comply with a completion data for the implementation and maintenance of the Office of the Superannuation Trustee of no later than the end of June, this year.

The company said APRA had provided IOOF with an opportunity to respond to APRA’s preliminary view and the regulated entity boards had resolved not to dispute the notice.

“IOOF will respond to APRA and continue to take positive and constructive steps to implement and maintain the OST within the operations of the Group and is confident of meeting the required deadlines,” it said.

The ASX announcement said the independent reviewer had identified 76 actionable items to be addressed by the company and that 72 of those items had been completed or substantially completed with the remainder being still in progress.

It said that as at 31 march, the independent reviewer had observed that IOOF “demonstrating genuine commitment to governance uplift within the organisation and fostering a cultural environment that was consistent with this uplift”.

“Positive steps towards the implementation of an Office of the Superannuation Trustee have been taken and the foundations of this dedicated business function established,” it said.

It said the head of the OST had effectively engaged with appropriate governance functions across IOOF and the reviewer expected this to occur in an effective manner for the OST.

 




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How about APRA doing it's job and extending investigations into ISA funds and how they conduct their businesses, especially within the intent of the sole purpose act? And for clarity, the sole purpose is the one for the benefit of members , not the sole purpose ISA currently use which is the benefit of Unions revenue and Labor propaganda financing

For further clarity "members" under the sole purpose test means fund members. When Industry funds say "run only to benefit members" they actually mean union members.

100% agree!!

Which IOOF funds do these notices relate to? Or every IOOF super fund?

How is it that the massive Successor Fund Transfer's from OnePath to IOOF have been given the green light to complete with this issue still remaining ?
Here we have thousands and thousands of investors being transferred to IOOF and are exposed to public information in regard to APRA and the superannuation fund trustees.

Spot on. How on earth can ANZ be pushing on with selling its customers to IOOF...over to you for an explanation ANZ!

IOOF get how many second chances and Dover got?????

another troll-like rant from the cheap seats. Apparently not even a year long detailed royal commission is good enough to move the debate on for some of the knuckle draggers.

Thank you Move On for your intelligent, genuine and well thought out commentary.
You are obviously a highly engaged person with an overwhelming depth of insight and knowledge.
Thank you again for your positive focus on the matters that effect a large portion of adviser's businesses.
It would be terrific if everyone could spend as much time in formulating their responses to important issues as you do.
You are obviously a unique and very special individual.

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