Ann: Investor presentation - IOOF FY 2018 results, page-47

The problem IOOF faces is the challenge by ASIC and the community to its integrated model and the extent to which it depends up on it for its profit. Like AMP, and unlike the banks, a lot of profit in IOOF is linked to wealth management integration.

ASIC is just going to make the current level of integration too hard or too expensive or too risky. In short, this is why the banks are getting out as much as they can. They can afford to. Not a core business.

I think the question that will be on investors’ minds about IOOF is just how well they have dealt with vertical integration conflicts in the past. They have not been one of the big 5 that ASIC have been hunting but every time IOOF pops up there seems to be something not quite smelling of roses. That was the case again today. We have heard about remediation by the big 5. Do we think that IOOF hs no problems given the size of its adviser group? Did you get the message from today that IOOF would have been on front foot facing up to issues or hoping they would not be noticed?

While there may be nothing at all to worry about at IOOF, I think people are just not sure.