The IOOF Holdings Limited (ASX: IFL) share price is down 26% due to an APRA notice and action by the regulator.

IOOF Holdings is a diversified financials business that offers a variety of services to clients including financial advice, platform management & administration, investment management and trustee services. IOOF has been operating since 1846 and is now one of the largest financial services industry businesses.

APRA Action

IOOF received a notice from the Australian Prudential Regulation Authority (APRA) last night saying that it intends to impose licence conditions on IOOF’s APRA regulated entities. It also alleges breaches of the Superannuation Industry (Supervision) Act 1993.

IOOF reassured shareholders by saying that the licence conditions largely cover initiatives that are already in progress, or have been completed, in consultation with APRA.

However, the APRA proceedings seek declarations and disqualification orders against Managing Director Chris Kelaher, Chairman George Venardos, CFO David Coulter, Company Secretary Paul Vine and General Counsel Gary Riordan. Essentially, most of the important officials.

IOOF said that the subject matters in the proceedings were disclosed to APRA a number of years ago and that IOOF has already addressed or is addressing them, and it’s constructively working with APRA.

It seems that the regulator is getting more hands-on after being criticised for its role in the issues from the Royal Commission.

IOOF said that it will continue to progress the agreed initiatives and will consider the allegations, but it thinks the allegations are misconceived and will vigorously defend the proceedings. For now, it won’t comment any further.

Is it time to buy IOOF?

Wise investors say that the best time to buy shares is when people are fearful or when blood is on the streets. The IOOF share price was down by a third since the start of 2018 before the start of trade, so it was better value thanks to the Royal Commission spotlight. Today’s fall makes it a drop of over 50%.

However, with this news only just breaking the share price could fall further, so it could be worth waiting to see what happens. Instead, you could look at the free report (below) about three true-and-tested ASX shares instead…


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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).