Perennial now responsible for product in new IOOF structure
IOOF has given an indication of the roles that will be performed by it and Perennial under the new ownership structure going forward with the announcement that Perennial will be responsible for sales, marketing and product development for the group.
“The model we had before was a sub-optimal model because we tended to have two products on the market, an IOOF/Perennial product and a Perennial product. The intention is to make ourselves more transparent in the market,” IOOF chief executive Ron Dewhurst said.
He revealed the ultimate aim was to have Perennial handle the asset management arm of the business and IOOF to take charge of the distribution function.
Dewhurst said the group was working towards eventually having all of its products in the market operating under the Perennial brand, however he warned the process would take a while as there were some legacy products that had to continue with the IOOF name due to regulatory issues.
“This move enables us to really clean up our structure and have a much more effective operating vehicle with improved accountability,” he said.
“In the past people would sell platform and Perennial product. Now there’ll be people who work under the Perennial roof who will sell only Perennial retail product and institutional product and people within IOOF who sell the platform and distribution business. So it’s just a much cleaner business model,” Dewhurst explained.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.