An ASIC review has found that 17 per cent of clients of IOOF unit RI Advice may have been exposed to harm, one month after a judge found that one of its former advisors violated the law by steering investors towards risky investments.
A former financial advisor employed by an IOOF unit accused of taking hefty commissions for steering investors towards risky investments contravened the financial advice provisions of the Corporations Act, a judge has found.
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”.
IOOF subsidiary Australian Executor Trustees failed to drag law firm Sparke Helmore into a case after it was hit with a $76.6 million judgment over breaches of duty in the sale of a 42,000 hectare timber plantation by collapsed forestry giant Gunns Group.
A former portfolio manager of IOOF has sued the firm for discrimination and breaches of the Fair Work Act, alleging she was groped on the breasts by a high ranking senior executive on her wedding day.
A Federal Court judge taking over a shareholder class action against IOOF Holdings from a recent High Court appointment has lamented the lack of progress in the case, which has been ongoing for nine months.
The former communications chief for IOOF claims she was terminated after revealing she suffered from a mental disability and sought a less stressful role.
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.
Financial services giant IOOF Holdings will be on the hook for any judgments or settlements reached in two class actions and an ASIC lawsuit as part of its $1.4 billion acquisition of NAB wealth management unit MLC.
IOOF has admitted that some allegations in an employee complaint at the centre of a shareholder class action were “substantially true”, including claims that it overstated the performance of its ‘Buy Model’ investment portfolio and that its head of research instructed subordinates to complete his training courses for him.