The corporate watchdog will take no formal action against...

The corporate watchdog will take no formal action against financial services giant IOOF despite an inquiry finding "a number of concerns" relating to the governance at the company and its corporate culture.
The formal inquiry by the Australian Securities and Investments Commission found a number of concerns relating to IOOF's compliance arrangements, breach reporting, management of conflicts of interest, staff trading policy, disclosure, whistleblower management and protection and cyber security.

ASIC said it had raised these concerns with IOOF.
"We have also advised IOOF that in our view the corporate culture at that time within IOOF contributed to these issues occurring," the regulator said.
An investigation by BusinessDay last year unearthed a cache of internal documents and explosive whistleblower testimony regarding allegations of serious misconduct, insider trading, front running, cheating by senior staff on compliance examinations, the misrepresentation of performance numbers on its fund and rampant plagiarism of research reports.
The whistleblower was sacked after raising his concerns with the head of HR and other senior representatives at the company.
ASIC stopped short of issuing an enforceable undertaking against IOOF. Instead, ASIC and IOOF have agreed for the company to an external compliance consultant to conduct an "expanded, broader and more comprehensive review of compliance arrangements within all IOOF business units", ASIC said.
ASIC acknowledged that IOOF had conducted an independent review of its breach reporting policy and procedures and the control environment within its research team.
"IOOF has made significant changes to their policies and procedures as a result," ASIC found.
"While ASIC welcomes such initiatives and steps taken by IOOF to rectify these issues, ASIC has also reached an agreement with IOOF to engage an external compliance consultant to conduct an expanded, broader and more comprehensive review of compliance arrangements within all IOOF business units."
"ASIC will continue to monitor and work cooperatively with IOOF and its board to ensure the necessary changes are properly effected."
The soft touch approach from the regulator comes amid calls for a Royal Commission over concerns ASIC is not a tough cop on the beat.
Since the scandal broke, IOOF's head of advice research, who was alleged to have front-run his research reports over a period of several years, has stepped down. IOOF's company secretary and head of HR and a long-time company director have also left the company.  
The company has also restructured its research department, outsourcing large parts of it. It's relationship with research report provider JPMorgan also ended.
ASIC found its review of "insider trading" by the senior executive at the company found that while it did occur it failed to move the share price enough to warrant action.
"This review determined that the release of the research reports had no material effect on the price of the relevant securities and there was no other evidence to warrant the commencement of a formal investigation," ASIC found
"As such we have decided to take no further action in relation to these allegations."

http://www.watoday.com.au/business/...despite-slew-of-concerns-20160708-gq1akv.html