IOOF chief says customers unfazed by negative press - Lucas...

IOOF chief says customers unfazed by negative press - Lucas Baird Jul 25, 2019

Ongoing regulatory scrutiny and court action against IOOF do not reflect how customers view the fund manager, chief executive Renato Mota says.

His comments are an attempt to explain the sharp rise in IOOF's funds under management to $149.5 billion during the past 12 months – a hike of about 19 per cent.

The same period has seen disqualification proceedings start in the Federal Court against five of the financial adviser's directors and executives over a $4.5 million compensation bill to its superannuation members.

"What I've done in the last six months is help create an environment where a strong culture can prosper."— Renato Mota, IOOF.

The Federal Court appearance last month capped off a year during which the wealth manager has also been forced to answer pressing questions over its past conduct at the Hayne royal commission and to regulators.

Mr Mota acknowledged that IOOF would have to be better in the aftermath of these events, but said it reflected a part of the company that customers did not recognise.

"What our clients can do is contrast all that negative press with what they experience with our front-line staff," he told The Australian Financial Review. "The strength of these results is proof."

The results, which IOOF disclosed to the ASX on Thursday, showed that the company's advice and administration division had acquired more than $23.6 billion in managed funds since June 2018.

The wealth manager added $5 billion of that in the last quarter alone, with the portfolio & estate administration and financial advice responsible for $993 million of inflows.

You can read the full AFR article here; https://www.copyright link/companies/financial-services/regulator-scrutiny-fails-to-drag-in-ioof-growth-20190725-p52amh