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.
“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,” the regulator 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 would review IOOF’s progress against its remedial action plans to “consider whether further regulatory action is required”.
However, IOOF said the file reviews highlighted by ASIC were already “part of IOOF’s existing remediation programs of work”.
The wealth giant said that “less than five files contained indications of some potential client detriment” and that the files “related to advice provided prior to the introduction of IOOF’s uplifted governance program and ASIC Report 515 compliant file review standards”.
“IOOF expects that any remediation required will be accommodated within IOOF’s existing advice remediation provision or within the remediation cap arrangements with ANZ,” IOOF said.
“IOOF is committed to ensuring the highest advice governance standards and since 1 January 2020 has conducted all advice reviews to the heightened ASIC Report 515 standards.”
