News: IFL UPDATE 1-Australia's IOOF Holdings top executives go on leave pending APRA proceedings

(Adds details on APRA proceedings, background)

Dec 10 (Reuters) - Australia's IOOF Holdings Ltd (IFL) said on Monday its managing director, Christopher Kelaher, and Chairman George Venardos would step aside from their respective positions immediately, pending resolution of proceedings brought by the prudential regulator.

The Australian Prudential Regulation Authority (APRA) said on Friday it was looking to disqualify five top IOOF executives for failing to act in their customers' interests, marking its first such intervention against existing company officials.

APRA has alleged that IOOF used money belonging to pension fund customers to compensate them for losses caused by the company. It said it had been working with the firm to resolve concerns about unaddressed conflicts of interest since 2015.

The news has cast a shadow on IOOF's $705 million deal to buy Australia and New Zealand Banking Group's (ANZ) pension business. ANZ, Australia' No. 3 lender, said it was seeking urgent information from IOOF and the regulator.

Kelaher and Venardos will be on leave while they focus on defending the actions brought against them by APRA, the wealth manager said in a statement.

Renato Mota, currently group general manager - wealth management, has been appointed acting chief executive, while Allan Griffiths, a non-executive Director of IFL, will be the acting chairman.

Chief Financial Officer David Coulter, company secretary Paul Vine and general counsel Gary Riordan will remain in their positions, the company said, but will have no responsibilities in relation to the management of the IOOF trustee companies and will have no engagement with APRA.

"We maintain our position that the allegations made by APRA are misconceived, and will be vigorously defended. The Board believes that, in the interests of good governance, it is appropriate that Chris and George step aside from their positions," Griffiths said.