Clearly the board misjudged the appetite for APRA taking these steps (as we all obviously did) but such actions have never to my knowledge occured in Australia (a regulator essentially banning the ceo Cfo and chair).
There’s absolutely no doubt this is political. It’s no coincidence that almost immediately after APRA is being strewn in the press as useless and incompetent, they take a Huge swing with an axe. The initial breach occurred in 2009.
How were you made a fool of? They’ve been aggressively trying to be as proftibable as possible within what they felt to be reasonable way but unfortubately in these matters there are grey areas and unfortunately they obviously went a bit far in retrospect, but it’s a fine line. I personally think there is a role of corporate adviser groups and IOOF have leading tech due to their scale, and have been able to reduce gross margins over the last 5 years which is good for customers. This company imo has alignment with customers as there scale allows gross margin reduction which benefits customers and benefits the company due to further positive funds flow.
The directors have been putting serious cash into these shares over the last 12 months buying all the way from 10.50 downwards.
They didn’t see this coming otherwise they would have acted differently at the agm.
What is key now is what the business looks like going forward. Kelaher and co will have to go imo. Kelahers priority will be with him preserving his wealth, he’s got about 4mil shares in IOOF. Gv has almost 100k shares and the other directors all have about 50k shares. They will have to change the leadership which hopefully will appease APRA.
This drop has hurt them deeply I’m sure, and fortunately their priority matches that of shareholders. I think they will put he company before themselves, as this will indirectly benefit them anyway.
Class action? For misjudging the remediation pathway for an error made by nab? Seems a bit ridiculous but possible.
No doubt this will drag on and effect funds flow moving forward but from speaking to a couple advisers they have also seen this as a media stunt as pointed out by the asa.
Interesting times, and certainly humbling for me personally.
IFL Price at posting:
$4.60 Sentiment: Buy Disclosure: Held
(20min delay)
