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ASIC to take no action against IOOF in insider trading inquiry

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ASIC to take no action against IOOF in insider trading inquiry

Australia's securities regulator will take no action againstIOOF Holdings Ltd.following its investigation into allegations of insider trading at the company, but haveraised concerns over the company's breach reporting and other issues.

The Australian Securities and Investments Commission saidJuly 8 that it has finalized its inquiries into allegations made against IOOF, includingclaims that a staff member was involved in insider trading when they traded insecurities before the release of IOOF research reports relating to thosesecurities.

ASIC determined that the release of the research reports hadno significant effect on the price of the securities. As such, the regulatorwill take no further action in relation to these allegations.

However, the regulator said it has identified some concernsrelating to IOOF's compliance arrangements, breach reporting, management ofconflicts of interest and whistleblower management, among other issues. ASICbelieves the corporate culture at that time within the company contributed tothese issues occurring.

ASIC reached an agreement with IOOF to engage an externalcompliance consultant to conduct a broader and more comprehensive review of thegroup's compliance arrangements.

Australian media had previously exposed alleged cases offront-running by the head of the company's research and insider trading by someother staff.