IOOF was a test case says APRA
The Australian Prudential Regulation Authority (APRA) has chosen to portray its failed action against IOOF Limited and five of its senior officers as a test case which has served to clarify conflicts of interest.
Hours after suffering the legal defeat in the Federal Court on Friday, APRA deputy chair, Helen Rowell, admitted the regulator was disappointed by the decision but said the case had served to examine “a range of legal questions relating to superannuation law and regulation that had not previously been test ed in court”.
“Litigation outcomes are inherently unpredictable, however APRA remains prepared to launch court action – where appropriate – when entities breach the law or fail to act in an open and cooperative manner,” her statement said.
“APRA still believes this was an important case to pursue given the nature, seriousness and number of potential contraventions APRA had identified with IOOF.”
Rowell also noted that additional licence conditions that APRA had imposed on IOOF in December were unaffected by the judgement and remained in force.
“APRA has seen significant improvement in the level of cooperation from IOOF since this case was launched. Additionally, the new licence conditions have enhanced IOOF’s organisational structure and governance, including the role and independence of the trustee board within the IOOF group. This will better support effective identification and management of future conflicts of interest,” her statement said.
The APRA action, launched in the immediate wake of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry is estimated to have cost APRA several million dollars in circumstances where costs were awarded against the regulator.
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.
