Shares in funds manager IOOF fell again today, continuing a slide since revelations in the financial services royal commission.
Today they dropped more than 2% in early trade. At the close, they were down 1.3% to $8.12. They’ve lost about 13% over the last month.
The Coppo Report put the shares down last week as “AVOID completely”.
IOOF, the royal commission was told, used its super fund members’ own money to compensate them after it mistakenly reduced distributions to members.
The prudential regulator APRA this week revealed its was taking another look at IOOF to determine whether “additional action is necessary” over “serious questions of compliance”.
The regulator also looked at evidence to the commission from IOOF chief executive Chris Kelaher.
“He demonstrated a failure to understand the covenants under the SIS (Superannuation Industry Supervision) Act and obligations of a trustee under trust law,” APRA told the royal commission.
“While a number of changes were agreed to at the IOOF board meeting of 1 August 2018, it seems that these matters were a ‘matter of indifference’ to Mr Kelaher, who did not accept that there were legitimate governance issues that needed to be addressed.
“It also appears on the evidence before the Commission that an important statement made in a letter to APRA dated 19 April 2017 was untrue.”
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