Federal Court delivers APRA, IOOF verdict

The Federal Court of Australia has found IOOF did not contravene the Superannuation Industry Supervision Act in the case brought against its APRA-regulated entities by the prudential regulator.

The Federal Court has held that IOOF's Investment Management Limited and Questor Financial Services, and the five individuals the regulator sought to have disqualified, including former managing director Chris Kelaher, did not contravene the SIS Act.

The Federal Court also awarded costs in IOOF's favour.

Australian Executor Trustees was also subject to the legal action, but was not mentioned in IOOF's ASX statement regarding today's decision.

APRA commenced the action in December 2018, seeking to impose licence conditions on IOOF and disqualify Kelaher, former IOOF chair George Vernados, chief financial officer David Coulter, general manager of legal, risk and compliance Paul Vine and general counsel Gary Riordan.

APRA was seeking significant changes to the identification and management of conflicts of interest by IIML, AET and IOOF. According to APRA, the action is based on concerns it raised in 2015 relating to IOOF and its entities' organisational structure, governance and conflicts management frameworks.

At the time, IOOF said the allegations were misconceived. Kelaher and Vernados later stepped down from their respective roles to focus on defending the proceedings.

Read more: IOOFAPRAFederal Court of AustraliaSuperannuation Industry Supervision ActChris KelaherGeorge VernadosDavid CoulterGary RiordanIIMLPaul VineQuestor Financial Services
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