IFL Set For A Drop?, page-22

"Systemic criminal activity such as insider trading should mean jail time. You don't care."

I think your interpretation of the word "systemic" - which is an acutely operative word - in this instance, differs from the way I have used it.

Systematic, to me, means that it is that pervasive throughout the organisation, that it threatens the very feasibility of the enterprise.

It implies that wholesale and widespread fraudulent activity of some or other kind has been actively sanctioned by the company's most senior executives across many vertical layers in the business, the intention of which was to actively de-fraud the firm's clients.

That, indeed, would be what I would describe as systematic.

What I observe, from my admittedly-limited vantage point, is one or two negligent individuals operating in one particular business unit of what is a very large an complex organisation, who where taking short-cuts because they were either too lazy, or too incompetent, to do their jobs.

And I put it to you that this sort of negligence is endemic to a certain small proportion of employees of any large business, probably in the same proportion that it is across broader society.

But for this to be called systemic suggests that it has the ability to materially impair the value of the business.

How does it do that?

As case in point, how many individuals across how many units operated by IFL are the subject of insider trading, let alone how many have been convicted?

"1000+ financial planners using secondhand, out-of-date and inaccurate information to advise mum and dad investors on investment. You don't care."

How was the research out-of-date and inaccurate? The crime here seems to me to be that one of IFL's business units failed to declare that it was propagating output which was not its own work. And again, in the context of this posing a systematic risk to the business, what allegations have been made against whom, and who is being prosecuted for this?

"Systemic misrepresentation of performance figures, bullying, harassment... You don't care."

How systematic is the representation of performance figures? Are the CEO, CFO, divisional heads, business unit managers all getting together once a month and saying, "Right, gents, the numbers don't look too good this month; we'd better tweak them somewhat." Or was this merely one - or a few individuals who were - putting a gloss on things? (Or, and goodness knows this happens from time to time - maybe the calculation of the returns was plain wrong?)

And exactly how much "bullying and harassment" has there been? And who raised the issue of "bullying and harrassment"? The individual who got the sack and who ran to an over-zealous journalist at the media who thought she had just got herself an exclusive scoop?


"IFL incompetent to do their jobs as they haven't the knowledge to successfully pass exams so they bully junior staff to cheat for them. You don't care."

Can you specify how IFL management were incompetent to do their jobs?
And How many managers bullied junior staff to cheat of them? One? Two? Ten? A hundred? In other words, was it systematic, or just isolated?


To me this has all the hallmarks of a classic media beat up. (And unfortunately, that the share price hasn't tanked, tells me that the broader market sees it that way, too, much to my annoyance.)

And, after an external review which mad some oversight recommendations which IFL has presumably taken on board and implemented, I suspect that, within the corridors and offices of IFL's many offices spread across the country-side, it is very much business as usual.


"In my opinion, IOOF is an Augean stables waiting for Hercules to drop on by to give it a clean."

The analogy drawn from Greek mythology is a nice one, but could you explain how this might occur in a practical sense?

- Another formal Inquiry? Commissioned by who, and this time with remit?

- ASIC or the ACCC? On what basis and by what mechanics?

- Senator Dastyari on a white charger?

(Surely Maurice Blackburn is not being elevated by you to the status of Hercules in this drama?)