The announcement of an independent review was prompted by a series of articles published over the weekend in the Fairfax press alleging insider trading and front running by IOOF employees.
ASIC has now confirmed that it is investigating the financial services company.
The announcement of an independent review was prompted by a series of articles published over the weekend in the Fairfax press alleging insider trading and front running by IOOF employees.
The results of the review will be passed on to the corporate and prudential regulators, said IOOF in a statement to the ASX.
Specifically, PwC will be engaged by IOOF to “oversee and advise” an existing internal review being conducted by group head of research and portfolio construction Matthew Drennan.
Mr Drennan was previously the chief investment officer of SFG Australia before it was acquired by IOOF in January 2015.
“The IOOF Advice Research division was reviewed in 2014, which led to the restructure in March 2015. This resulted in the appointment of a new ‘Group Head of Research and Portfolio Construction’,” said the IOOF statement.
“The new Group Head is currently reviewing the existing policies, procedures and how research is conducted and disseminated through the Group. PwC will be engaged to oversee and advise on the review,” said the statement.
PwC will assess the “design and operating effectiveness” of the IOOF research division’s “control environment”, said IOOF.
The accounting firm will conduct “system walk throughs” to identify the effectiveness of IOOF processes and controls; it will test the operating effectiveness of the “control environment”; and it will conduct design effectiveness testing, said the statement.
PwC will also be tasked with reviewing IOOF’s breach reporting policy; the effectiveness of IOOF’s breach reporting systems, processes and controls; and the operating effectiveness of the breach reporting process.
IOOF said it would keep the market informed of any “material outcomes” of PwC’s review.
[quote name=”Twists and Turns”]IOOF says all issues were reported to ASIC, but wait …now ASIC is investigating. IOOF says no problems with internal systems, but wait…now PWC is brought it. What next???[/quote]
IOOF says all issues were actioned in an appropriate manner according to the relevant legislation of the day.
They would NOT report insider trading to ASIC in 2009 – ASX were the regulatory body for insider trading in 2009. ASIC became the appropriate body in August 2010. Adele has tried (and succeeded) to deceive by quoting CURRENT legislation with the fact that in 2009 insider trading was not reported to ASIC. NO ONE reported insider trading to ASIC in 2009 as they were irrelevant to the issue. Please look it up, and you might appreciate the deliberate lie being peddled by Fairfax.
ASIC HAVE to investigate all complaints that are made. Fairfax have lodged complaints, and they are compelled to investigate. That goes without saying. But Fairfax pretend that ASIC are now alarmed and these are new issues that require urgent action. Again, an attempt to deceive. EVERY complaint lodged has to be looked at by ASIC, no matter how frivolous or unsubstantiated or flimsy.
IOOF have launched the PWC review to prove what they already know, but to put an independent slant on it. That will provide ammunition against the Fairfax claims and innuendo and deceit.
IOOF says all issues were reported to ASIC, but wait …now ASIC is investigating. IOOF says no problems with internal systems, but wait…now PWC is brought it. What next???
More money wasted that will eventually be passed on to clients. Macquarie did the same – they got a clean bill of health and 12 months later were slapped with an EU for poor documentation and advice processes dating back 10 years. Why doesn’t the regulator just go in and check and if there are systemic issues, then enforce an EU. If ASIC say they don’t have the funding to do it, why doesn’t the cost of the review from ASIC get paid for by IOOF. It would save a lot of time and money!