The IOOF Holdings Limited (ASX: IFL) share price has fallen 1.5% after the financial services business announced the latest on its dealings with APRA.
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.
Why The IOOF Share Price Is Down
IOOF announced an update regarding the licence conditions imposed by the three APRA Regulated Entity subsidiaries (AREs).
Even though IOOF said that the AREs are committed to meeting the licence conditions and have made significant progress, an independent reviewer has said there are still four items that remain in progress.
The reviewer did say that IOOF is demonstrating genuine commitment to an uplift in governance.
However, in relation to implementing a dedicated business function (called the Office of the Superannuation Trustee (OST)), the independent reviewer said the conditions relating to the OST remain in progress and therefore APRA has formed a preliminary view that the AREs have breached their license conditions relating to the OST. IOOF is going to continue to work on the issues.
This latest update shows that the issues brought up in the Royal Commission seem to be ongoing, so I would rather consider ASX shares in the free report over IOOF shares.
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