by Alan Thornhill
The financial services giant IOOF will be required to accept a measure of external surveillance, under arrangements announced today by the industry watchdog, the Australian Securities and Investments Commission.
However ASIC stopped short of taking further action against IOOF, which offers superannuation products, financial advice and many other similar products.
It noted that, in July last year, it had commenced inquiries into allegations made against I.O.O.F. Holdings Limited and its subsidiaries (IOOF), including issues raised by a former employee of IOOF.
It said the allegations have been the subject of several media articles and an inquiry by the Parliamentary Joint Committee on Corporations and Financial Services.
And it added: “ASIC has now finalised its inquiries.”
It had investigated several issues, including allegations of insider trading,raised by a former employee of IOOF.
ASIC said the allegations had also been the subject of several media articles and an inquiry by the Parliamentary Joint Committee on Corporations and Financial Services.
“ASIC has now finalised its inquiries,” the commission said.
It said the allegations of insider trading concerned an IOOF staff member’s involvement in insider trading before research reports became public.
The commission found that although this did occur it failed to move the share price enough to warrant action.
ASIC’s inquiries also included a review into allegations relating to corporate governance and licensee breaches by IOOF.
It said: “This review identified a number of concerns relating to IOOF’s compliance arrangements, breach reporting, management of conflicts of interest, staff trading policy, disclosure, whistleblower management and protection and cyber security.
And added:” We have raised these concerns with IOOF.
“We have also advised IOOF that in our view the corporate culture at that time within IOOF contributed to these issues occurring.”
Then the commission said: “Concurrent with ASIC’s inquiries, IOOF appointed Price Waterhouse Coopers to conduct an independent review of its regulatory breach reporting policy and procedures and the control environment within its research team.
And it added: “IOOF has made significant changes to their policies and procedures as a result.
The commission said: “While ASIC welcomes such initiatives and steps taken by IOOF to rectify these issues, ASIC has also reached an agreement with IOOF to engage an external compliance consultant to conduct an expanded, broader and more comprehensive review of compliance arrangements within all IOOF business units.”
“ASIC will continue to monitor and work cooperatively with IOOF and its board to ensure the necessary changes are properly effected,it added.
Weathercoast by Alan Thornhill
A novel on the murder of seven young Anglican Christian Brothers in the Solomon Islands.
Available now on the iTunes store.
Alan Thornhill is a parliamentary press gallery journalist.
Private Briefing is updated daily with Australian personal finance news, analysis, and commentary.
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