Which ANZ-aligned advice business jumped off the IOOF acquisition?
IOOF has acknowledged that at least one business operating under the ANZ financial planning licenses it acquired did not transition across, generating a $1.3 billion impact on funds under advice (FUA).
In an update filed with the Australian Securities Exchange, IOOF noted that “ex-ANZ wealth aligned dealer group flows were impacted by the departure of one practice which was acquired by a third party”.
However, the IOOF announcement claimed that although related funds under advice were $1.3 billion, this had an insignificant impact on licensee revenue.
The loss of what must have been an advice firm of scale from the ANZ transaction clouded what IOOF chief executive, Renato Mota, described as having been the best quarter of inflows recorded across IOOF’s platforms and financial advice businesses since June, 2018.
“Pleasingly, it demonstrates the strong organic growth momentum achieved in a challenging year for the industry,” he said.
“In a year which has seen the reputation of the sector challenged, many of our competitors have suffered significant net outflows. IOOF’s emphasis on the value of financial advice, putting our clients first and resetting our organisational culture has translated into a strong business performance for the quarter.”
IOOF reported that, broadly, funds under management, advice and administration stood at $149.5 billion as at 30 June, representing an increase of 18.7 per cent over the prior year and an increase of 5.9 per cent or $7.5 billion when excluding ANZ Wealth-aligned dealer group funds under advice acquired during the year.
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