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 and RI Advice Group, according to ASIC.

A statement from the commission says that in December 2020, it completed a review of the licensees’ supervision and monitoring processes and the quality of advice their advisers provided to a sample of clients.

ASIC says it found that 15 percent (Bridges) and 17 percent (RI Advice) of the client files reviewed “…contained indications of some potential client detriment.”

It states: “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.

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

ASIC adds that it 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.”