The IOOF Holdings Limited (ASX: IFL) share price was trading as much as 6% higher this morning following an update on Federal Court proceedings.
It’s been a busy week for IOOF, with an update on the acquisition of the ANZ Wealth Pension and Investments (P&I) business pushing the shares 10% higher yesterday.
IOOF shares are up 18% for the week so far.
About IOOF Holdings Limited
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 businesses.
Federal Court Proceedings
In a positive announcement for IOOF shareholders, the proceedings brought by the Australian Prudential Regulation Authority (APRA) against two of IOOF’s APRA-regulated entities (IOOF Investment Management Limited and Questor Financial Services Limited) and certain directors and executives will not proceed in the Federal Court of Australia.
Previously, the Court held that IOOF’s APRA regulated entities and the five individuals in question did not contravene the Superannuation Industry (Supervision) Act 1993 (Cth).
The Court also declined to make the disqualification orders sought against the five individuals, and awarded costs in IOOF’s favour. This decision was made towards the end of last month, which Rask Media’s Max Wagner covered in his article here.
The deadline for APRA to lodge an appeal against this judgement was due to lapse today and APRA has announced that it will not appeal the matter.
Buy, Hold or Sell?
The acquisition of the ANZ Wealth Pension and Investments (P&I) business is still waiting for approval from APRA, so it may be prudent for investors to wait for this.
IOOF shares do offer a nice dividend yield, however, the business has had a difficult 18 months under the Royal Commission spotlight.
If, like me, you think IOOF has had too much going on lately and you’re interested in growth shares, you may prefer to look at the companies profiled in the free report below.
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At the time of writing, David does not have a financial interest in any of the companies mentioned.
