IOOF misses deadline to overhaul super

Beleaguered wealth manager IOOF breached its new licence conditions by missing a deadline to overhaul its scandal-rocked superannuation business.

IOOF said on Friday an independent review of compliance had identified 76 issues to be addressed by March 31, with four issues still in progress relating to its superannuation business.

The company said it would not challenge APRA’s finding that it had failed to implement and maintain a dedicated office of the superannuation trustee, but noted the foundations of a new business function had been established and progress was being made.

IOOF said the Australian Prudential Regulation Authority was considering issuing directions to comply by June 30 and pledged to take “positive and constructive steps” to meet its required deadlines.

“We have been actively and positively addressing the governance issues raised by APRA in the interests of all stakeholders and made significant progress,” chairman Allan Griffiths said in a release.

“We will continue working constructively to complete the remaining initiatives.”

APRA imposed additional licence conditions on IOOF in December after the financial services royal commission heard evidence the company had failed to act in the best interests of its superannuation members.

Managing director Christopher Kelaher left IOOF this month amid a shareholder class action related to the action by the prudential regulator.

Mr Kelaher had been on leave since December, when APRA moved to disqualify him and other top brass over accusations they had failed to act in members’ interests.


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