Glyn Ayres

ASIC’s warning about the futility of mediation with an IOOF subsidiary has proved prophetic, with talks last week failing to resolve the regulator’s case ahead of trial starting Monday.

A judge has ordered ASIC to enter mediation before heading into a “very expensive” trial with an IOOF subsidiary accused of giving shonky advice, over objections from the regulator that mediation would be “completely futile”.

An IOOF subsidiary sued over “bad advice” has failed in its bid to stop ASIC from using documents from the banking royal commission as evidence in the case, with a judge saying the company had already provided the material to the financial watchdog without objection.