IOOF (ASX: IFL) $4.54 as at 07/12/2018
Wealth manager IOOF is the worst performing stock in the ASX200 today, falling 36% after the company announced APRA had begun proceedings against a number of the company’s executive team.
IOOF has come under fire throughout the Royal Commission into financial services firms and a number of breaches have come to light. The stock was already struggling prior to today’s announcement, and it is now trading at levels not seen in 9-years.
APRA is pursuing the company’s CEO, CFO, General Manager of Legal, Risk & Compliance, Chairman and General Council seeking disqualifications from these people from acting as a trustee of a superannuation entity, putting their jobs at risk.
The biggest fear here is that the proceedings will put the ANZ (ASX: ANZ) wealth business deal at risk. The ANZ deal has long been touted as the saving grace for IOOF investors, the light at the end of the tunnel which would see the business turn a corner. Now that appears under a bit of pressure.
This is just another sign of the times in the financial services industry, regulation is squeezing many businesses and many are struggling to keep up
IOOF (ASX: IFL) Chart
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