IOOF Holdings Ltd (ASX: IFL) shares are up more than 7% this morning after coming out of a trading halt with a big announcement. Here’s what you need to know.
About IOOF Holdings
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.
Federal Court Update
IOOF shares went into a trading halt this morning as the company announced a victory in the Federal Court. The Australian Prudential Regulation Authority (APRA) had brought a case against IOOF claiming that IOOF Investment Management and its directors and executives had failed to act in the best interest of superannuation members.
IOOF reported that the Court held that IOOF and five individuals who were responsible for the entities at the time did not contravene the Superannuation Industry Act 1993 (Cth). APRA was seeking disqualification orders against the five individuals, which the Court declined to make.
Costs were also awarded in IOOF’s favour.
This appears to be a big win for IOOF and puts them one step further away from the fallout of the Royal Commission. IOOF shares are now trading again, but the company still expects to make a more detailed announcement “in due course”.
The repercussions of the Royal Commission have impacted IOOF but it seems like the company is moving in the right direction. The win is a positive step and the company does offer a very attractive dividend yield, so it might be one to watch.
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Disclosure: At the time of writing, Max does not have a financial interest in any of the companies mentioned.