Ann: ANZ Wealth Management updated financial information, page-43

The banks are already doing that Index mainly due to the conflict of interest that is inherent in the vertcial integration that is a feature of IOOF business model.
The shares will tank if RC recommends that such a model should not exist.

@Dumbass

The worst-case scenario I can see, from IOOF’s perspective, is one where the Financial Advice business has to be separated from the “product” areas (i.e. Platforms, Investment Management and Trustees).

While such a scenario would be value destructive, for IOOF’s shareholders, it still wouldn’t represent an existential threat for the Company. Moreover, the possibility of such an outcome is a known fact, i.e. the market is already pricing it in to some extent.

Regarding the actual probability of it happening, I have no idea, but I do not see it as being the base-case scenario. As you suggested yourself, for instance, the simple removal of incentives for financial planners to “cross-sell” in-house products would go a long way toward preventing conflict of interest.

So, there is a lot that regulators can do to improve corporate conduct, before starting to enforce split-ups. Just look at what has happened in the US and European banking systems since the GFC (and the Greek debt crisis), for instance: a lot of new regulation has been introduced, but not much has really changed in terms of actual business models.

IMHO & DYOR