In July 2015 ASIC commenced inquiries into allegations made against I.O.O.F. Holdings Limited and its subsidiaries (IOOF), including issues raised by a former employee of IOOF. The allegations have also been the subject of several media articles and an inquiry by the Parliamentary Joint Committee on Corporations and Financial Services.

ASIC has now finalised its inquiries.

Some of the allegations concerned an IOOF staff member's involvement in insider trading when they traded in securities prior to the release of IOOF research reports relating to those securities. ASIC's market surveillance team has completed a thorough review of the circumstances and trades involved. This review determined that the release of the research reports had no material effect on the price of the relevant securities and there was no other evidence to warrant the commencement of a formal investigation. As such we have decided to take no further action in relation to these allegations.

ASIC's inquiries also included a review into allegations relating to corporate governance and licensee breaches by IOOF. This review identified a number of concerns relating to IOOF's compliance arrangements, breach reporting, management of conflicts of interest, staff trading policy, disclosure, whistleblower management and protection and cyber security. We have raised these concerns with IOOF. We have also advised IOOF that in our view the corporate culture at that time within IOOF contributed to these issues occurring.

Concurrent with ASIC's inquiries, IOOF appointed PricewaterhouseCoopers to conduct an independent review of its regulatory breach reporting policy and procedures and the control environment within its research team. IOOF has made significant changes to their policies and procedures as a result.  

While ASIC welcomes such initiatives and steps taken by IOOF to rectify these issues, ASIC has also reached an agreement with IOOF to engage an external compliance consultant to conduct an expanded, broader and more comprehensive review of compliance arrangements within all IOOF business units.

ASIC will continue to monitor and work cooperatively with IOOF and its board to ensure the necessary changes are properly effected.