IOOF has failed to reach APRA’s March target for establishing a dedicated governing body for superannuation trustees.
The regulator imposed 76 licence conditions on the wealth group in December, of which the four items related to implementing a “dedicated business function” to support its super trustee companies, an Office of the Superannuation Trustee (OST).
The four items remain “in progress”.
APRA hit IOOF with a show cause notice saying that the firm had breached its licence condition relating to the OST, giving a new final deadline for its implementation by June.
The company said the body’s foundations had been established, with the OST head engaging with IOOF’s three APRA-regulated entity (ARE) boards and senior management to establish its operations.
IOOF has, however, decided not to dispute APRA’s notice.
The ARE boards and senior management were said to have demonstrated that they will provide the necessary funding for the OST.
“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.
“We will continue working constructively to complete the remaining initiatives.”
The delay has occurred after IOOF deferred its purchase of ANZ’s pension and investments business OnePath from March to July.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
Sarah has a dual bachelor's degree in science and journalism from the University of Queensland.
You can contact her on [email protected].
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