IOOF has confirmed it is working with the Australian Prudential Regulation Authority (APRA) to create appropriate business separation with respect to its superannuation funds.
At the same time as announcing that its managing director, Christopher Kelaher and chairman, George Venardos would be standing aside pending the outcome of APRA legal action, the company said it was working with the regulator on a Managed Action Plan (MAP) integral to which was separation of the Registrable Superannuation Entity and Responsible Entity functions.
It said the move entailed “separating the RSE and RE functions of both IOOF Investment Management Limited and Australian Executor Trustees Limited”.
“Following recent discussions with APRA, the process to effect this separating has been approved by the relevant boards and is underway,” the company’s Australian Securities Exchange (ASX) announcement said. “This process involves various licensing issues and other significant work that will take some time to implement effectively and will address many of the other issues included in the MAP.”
“We will progress this initiative with diligence and as expeditiously as possible,” the IOOF announcement said.
It said that IOOF was also establishing a dedicated business function for all APRA regulated entities and that integral to this was an independent chair and majority independent board members.
IOOF also signalled that it was consolidating its superannuation businesses, and that this would take further shape following completion of its acquisition of the ANZ business.