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Monday 26 April 2021

21-084MR IOOF advice licensees to implement changes following ASIC surveillance

IOOF has committed to taking remedial action to address deficiencies identified as a result of an ASIC surveillance of two financial advice licensees: Bridges Financial Services Pty Ltd (Bridges) and RI Advice Group Pty Ltd (RI Advice).

In December 2020, ASIC completed a review of the licensees’ supervision and monitoring processes and the quality of advice their advisers provided to a sample of clients.

ASIC found that 15% (Bridges) and 17% (RI Advice) of the client files reviewed contained indications of some potential client detriment.

In response to ASIC’s findings, IOOF has agreed to develop and implement remedial action plans for Bridges and RI Advice to address ASIC’s findings and concerns, including, where appropriate, client review and remediation programs in accordance with ASIC Regulatory Guide 256 Client review and remediation conducted by advice licensees.

IOOF has also agreed to provide ASIC’s findings to the boards of directors of Bridges, RI Advice and IOOF Holdings Ltd.

ASIC will review the implementation and progress of the remedial action plans after each phase is finalised, and again at conclusion, to consider whether further regulatory action is required.

Last updated: 26/04/2021 12:00