ASIC has put additional licence conditions on IOOF Investment Services to improve its governance and conflicts management.
The corporate regulator has imposed additional licence conditions on the Australian Financial Services Licence (AFSL) of IOOF Investment Services Ltd (IISL) as part of an application by IISL to vary its licence.
IISL sought a variation to its licence to facilitate the transfer of managed investment scheme, investor directed portfolio services (IDPS) and advice activities from IOOF Investment Management Ltd (IIML) to IISL. The transfer is part of a reorganisation of IOOF Group.
In granting the licence variation, ASIC has decided to impose additional conditions relating to the governance, structure and compliance arrangements of IISL.
ASIC’s decision to impose additional licence conditions took into account concerns highlighted by the Hayne royal commission about the real and continuing possibility of conflicts of interests in IOOF Group’s business structure, ASIC’s past supervisory experience of these entities and material supplied by IISL as part of its licence variation application. IISL agreed to the imposition of the additional licence conditions.
In summary, the additional conditions specifically cover:
"ASIC is serious about improving the quality of governance and conflicts management across the funds management sector and ensuring that investors’ best interests are the highest priority of fund managers," ASIC commissioner Danielle Press said.
"ASIC will use its licensing power, including through the imposition of tailored licence conditions to address governance weaknesses, the risk of poor conduct or vulnerabilities to conflicts of interest in a licensee’s business model."
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