Advice ‘deficiencies’ found in IOOF after ASIC probe
The wealth giant has had to take action to implement changes to address the various issues in client files across two of its licensees after an ASIC investigation.
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), according to a statement by the regulator.
In December 2020, ASIC had 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 per cent (Bridges) and 17 per cent (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 said.
“IOOF has also agreed to provide ASIC’s findings to the boards of directors of Bridges, RI Advice and IOOF Holdings Ltd.”
The regulator said it will seek to review the implementation and progress of the remedial action plans after each phase is finalised, and again at conclusion, to consider whether further regulatory action is required.
Tony Zhang
Tony Zhang is a journalist at Accountants Daily, which is the leading source of news, strategy and educational content for professionals working in the accounting sector.
Since joining the Momentum Media team in 2020, Tony has written for a range of its publications including Lawyers Weekly, Adviser Innovation, ifa and SMSF Adviser. He has been full-time on Accountants Daily since September 2021.
