IOOF Holdings Limited (ASX: IFL) has agreed to licence conditions with APRA, the bank regulator. Following its heavy share price fall I think it begs the question, is it time to buy IOOF shares?
Who Is IOOF?
IOOF Holdings is a diversified financials business that offers a variety of services to clients including financial advice, platform management & administration, investment management and trustee services. IOOF has been operating since 1846 and is now one of the largest financial services industry businesses.
IOOF agrees to APRA conditions
IOOF announced after close of trade on Friday afternoon that an agreement has been reached, and formal notice received, regarding the proposed licence conditions that Australian Prudential Regulation Authority (APRA) established earlier this month.
The agreed licence conditions relate to IOOF’s three APRA Regulated Entity subsidiaries (AREs).
IOOF said that the conditions cover initiatives that are already underway or completed. Certain initiatives have had the completion dates revised, the condition with the longest timeframe is required to be completed by 31 December 2019.
IOOF Acting Chairman Allan Griffiths said, “We continue to focus on addressing the governance issues raised by APRA in the interests of all stakeholders in an orderly and collaborative manner.”
Is it time to buy IOOF shares?
The IOOF share price has dropped 56% since the beginning of 2018. With the pressure of the Royal Commission still high on financial institutions, it is uncertain where the share price will go from here.
I’d much rather avoid betting on the banks and IOOF right now and go for proven shares in other sectors instead, such as the ones in our free report.
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