IOOF will take remedial action to address deficiencies identified by ASIC within Bridges Financial Services and RI Advice Group.
During surveillance in December 2020, ASIC found 15% of client files from Bridges and 17% of files from RI Advice contained indications of potential client detriment.
In response, IOOF has agreed to develop and implement action plans for both licensees to address the findings and review and remediate clients where necessary.
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, the regulator said.
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It's the latest in what has been a long line of issues for IOOF and its subsidiaries.
Earlier this year subsidiary Australian Executor Trustees lost its appeal against a 2019 Supreme Court decision in the S.E.A.S. Sapfor Forests case.
In February ASIC was ordered into mediation with RI Advice and former adviser John Doyle in a case it brought against the latte two over bad financial advice.
In August 2020 ASIC launched action against RI Advice over cybersecurity breaches between December 2017 and May 2018. Earlier that year, IOOF settled a class action brought by Quinn Emanuel Urqhart & Sullivan over the conduct of IOOF Investment Management and Questor Financial Services.