PwC report finds no 'fundamental breakdown' at IOOF
A recent independent review by PwC of IOOF's breach-reporting process and research team found no "fundamental design or process breakdowns", IOOF said in a statement.
The report instead provided key recommendations based around further improvement of the existing operating model for the research team control environment and the architecture of the breach and incident policies and procedures, the statement said.
PwC recommends the development of a detailed strategic plan to articulate a clear vision of the future operating model for the research team. The report also recommends adopting standard procedures across IOOF's various individual licensees and at the group level, according to the statement.
IOOF managing director Christopher Kelaher said the IOOF board has accepted all of the report's recommendations and would be immediately implementing them, with a review to be undertaken in six months.
"IOOF acknowledges that putting clients' interests above all else is paramount. We accept the need to continuously examine our policies and constantly challenge the way we do business in order to protect the interests of our clients and deliver on clients' expectations of trustworthy advice and behaviour," Mr Kelaher said.
PwC's recommendations come as IOOF reported a 41 per cent increase in underlying net profit after tax for the full financial year, with the company pointing to its acquisition of Shadforth as a positive driver of earnings.
Reporting the company's financial results via the ASX last week, IOOF posted an underlying net profit after tax of $174 million.
According to IOOF, the acquisition of Shadforth delivered $13 million in pre-tax synergies over the year and is "on track to deliver $20 million" by the end of 2016.
"The acquisition of Shadforth during the year has been immediately accretive," IOOF managing director Christopher Kelaher said.
"Shadforth has added scale, further diversified our business and contributed positively to earnings."
IOOF also reported a 19 per cent increase in net flows into its flagship platforms, taking net flows to $1.7 billion.
"Over the past few years we have significantly increased our scale and diversified our earnings," Mr Kelaher said.
"Industry fundamentals remain positive with strong growth forecast for the superannuation industry, an ageing population and increasing requirement for advice.
"With our strong commitment to quality service and advice, we have a strong base to both grow our existing businesses and pursue new market opportunities," he said.
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