IOOF acquires super scale but not without problems

IOOF is predicting that as a result of its acquisition of MLC Wealth it will rise to be the second largest superannuation entity in Australia with funds under administration (FUA) of $173 billion.

According to an investor presentation allied to the MLC Wealth acquisition, MLC will rank just behind the combined QSuper and Sunsuper which boast a total of $188 billion in FUA, and just ahead of AustralianSuper with $172 billion in FUA.

It will represent a substantial leap in the rankings for IOOF which up till now has boasted just $70 billion in FUA.

Related News:

What is more, the transaction brings leading superannuation fund asset consultant, JANA under the broad IOOF banner giving it investment servicing reach across both retail and industry superannuation funds.

However, the transition of the superannuation businesses are not without challenge, with the briefing document noting “indemnities provided for specific pre-completion matters including tax, breaches of anti-money laundering, regulator fines and penalties, an 80% share of provision of a provision overrun for a remediation program for workplace super and three pieces of litigation (relating to an ASIC [Australian Securities and Investments Commission] action in relation to plan services fees, a class action in relation to grandfathered commissions and a separate class action in relation to the transition of certain accrued default members to MySuper) and certain ongoing regulatory investigations and certain existing investigations in respect of MLC Group including investigations relating to the implementation of planned service fees, late lodgement of significant breach reports and deduction of adviser fees from super accounts of deceased members”.




Recommended for you

Comments

Add new comment