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IOOF probe 'limited', reveals chance of front-running

PwC's investigation into IOOF earlier this year was narrow in scope, and PwC has assumed no responsibility for the accuracy or completeness of the information in the report.

Made public last week, the report reveals there was no evidence of front-running detected at IOOF. However, it also states PwC did not have access to the employee who made the allegations nor was PwC able to request information from staff within the research department, about which some of the allegations were made.

"Our services have been primarily based upon the information provided by IOOF. We have relied on and not verified the truth or accuracy of all information or material provided or made available to us during our engagement," the report said.

"We do not assume any responsibility and make no representations with respect to the accuracy or completeness of any information provided by you and on your behalf," the report said.

According to the ABC, Labor Senator Sam Dastyari has called the report a "whitewash."

"This is a report that was created with the sole intention of minimising their own liabilities," Senator Dastyari told ABC's AM program.

"What you have is a culture of cover-up within IOOF which frankly appears to go to the top."


The PwC report was made public ahead of today's second Senate hearing at which more IOOF executives will be interrogated, including IOOF chairmen Roger Sexton, company secretary Danielle Corcoran and head of investigations Rob Urwin.

The hearing follows allegations of front-running and insider trading at IOOF sparked by Fairfax Media news reports.

Last month, the committee grilled IOOF managing director Chris Kelaher, who reiterated there was no systemic failure at the $2.6 billion financial services giant that required it to inform ASIC.

Mr Kelaher said a PwC inquiry found no evidence of front-running detected. He later agreed to turn over that PwC report to the committee.