April 26, 2019 / 2:21 AM / a month ago

UPDATE 1-Australia's IOOF says units breached licence conditions, may have until June to comply

(Adds APRA allegation on use of pension fund money)

April 26 (Reuters) - Australian wealth manager IOOF Holdings Ltd on Friday said three subsidiaries have received notices from the pension fund regulator saying they are not in full compliance of their licence conditions.

IOOF in a statement said an independent review of compliance had identified 76 issues to be addressed by the end of March, and that as of April 1, four issues were still in progress.

The Australian Prudential Regulatory Authority (APRA) is considering giving the subsidiaries until the end of June at the latest to reach full compliance, IOOF said.

“We have been actively and positively addressing the governance issues raised by APRA in the interests of all stakeholders and made significant progress. We will continue working constructively to complete the remaining initiatives,” IOOF Chairman Allan Griffiths said in the statement.

In December, APRA said IOOF subsidiaries had used pension fund customers’ own money to compensate them for losses caused by the company. The allegation followed an industry-wide inquiry into the finance sector - dubbed the Royal Commission - which uncovered widespread wrongdoing at a host of institutions.

IOOF denied APRA’s allegation and said it would vigorously defend itself. It has nevertheless lost over half its market value and seen the departure of its top executives.

A spokesman for APRA declined to comment on Friday.

Reporting by Shriya Ramakrishnan in BENGALURU; Editing by Christopher Cushing

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