IOOF sees $93m outflows as practices exit

In its quarterly business update, IOOF said the result had come about due to two advice practices from ex-ANZ licensees leaving the group and taking $155 million in client money with them, while 12 smaller practices with $115 million funds under advice between them had also left.

Inflows were flat across the quarter as the advice business struggled to attract new clients amid the uncertain economic environment, IOOF said.

IOOF also gave an update on its advice remediation costs, which it said were approximately $223 million.

The group said remediation provisions relating to the ex-ANZ licensees would increase by $80 million, but this would be offset by funds received from ANZ to cover the remediation.

"The increased provision is a consequence of change in methodology relating to adviser categorisation, which now aligns to that used by IOOF," the group said.

However, IOOF said if there were to be any further increases in the provision amounts, ANZ may not cover these.

"Separate to any remediation program agreements, ANZ has provided a capped indemnity regarding certain claims by clients made by October 2022 for various types of adviser conduct prior to the completion of the acqusition by IOOF," the group said.