IOOF lashes out at ASIC enforcement By Reporter 27 April 2021
The wealth giant has struck back at ASIC finding that one in six clients at two of its advice licensees were exposed to damages, saying the issues have already been dealt with.
In a statement released yesterday, ASIC said surveillance had found 15 per cent of advice files at IOOF-aligned dealer group Bridges Financial Services, and 17 per cent of files at RI Advice, “contained indications of some potential client detriment”.
IOOF had committed to taking remedial action after the regulator’s investigation had uncovered the deficiencies in December last year, ASIC said.
Date Time
IOOF advice licensees to implement changes following ASIC surveillance
IOOF has committed to taking remedial action to address deficiencies identified as a result of an ASIC surveillance of two financial advice licensees: Bridges Financial Services Pty Ltd (Bridges) and RI Advice Group Pty Ltd (RI Advice).
In December 2020, ASIC completed a review of the licensees’ supervision and monitoring processes and the quality of advice their advisers provided to a sample of clients.
ASIC found that 15% (Bridges) and 17% (RI Advice) of the client files reviewed contained indications of some potential client detriment.
In response to ASIC’s findings, IOOF has agreed to develop and implement remedial action plans for Bridges and RI Advice to address ASIC’s findings and concerns, including, where appropriate, client review and remediation programs in accordance with ASIC Regulatory Guide 256 Client review and remediation conducted by advice licensees.
ASIC probe finds advice âdeficienciesâ at IOOF
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The corporate regulator has found up to 17 per cent of clients of two IOOF financial advice subsidiaries have been exposed to harm, following an investigation into advice quality almost three years after the wealth giant was among the worst offenders identified by the Hayne royal commission.
Surveillance of IOOF financial advice completed by the Australian Securities and Investments Commission in December last year concluded 15 per cent of client files at Bridges Financial Services and 17 per cent of client files at RI Advice Group âcontained indications of some potential client detrimentâ.
IOOF CEO Renato Mota claims the wealth manager has learned the âhard lessonsâ of the royal commission. Â
IOOF CEO Renato Mota
IOOF has committed to taking remedial action against its Bridges Financial Services and RI Advice licensees after an investigation by the corporate regulator revealed “deficiencies” with the groups’ supervision processes and the quality of advice provided.
According to the review, which concluded in December 2020 and involved separate samples of clients files, 15 per cent of Bridges’ files and 17 per cent of RI Advice files “contained indications of some potential client detriment”.
“In response to ASIC’s findings, IOOF has agreed to develop and implement remedial action plans for Bridges and RI Advice to address ASIC’s findings and concerns, including, where appropriate, client review and remediation programs…” an ASIC statement read.