ANZ delays key vote on OnePath sale to IOOF
ANZ has delayed a key vote by the OnePath board of trustees on the sale of the bank’s pensions and investments unit.
ANZ has delayed a key vote by the OnePath board of trustees on the sale of the bank’s pensions and investments unit, as embattled suitor IOOF seeks to adhere to a strict timeline of licence conditions imposed by the prudential regulator.
The Australian understands while the OnePath board will still meet in February as scheduled, a vote on the sale of the superannuation business won’t occur as previously planned. The vote is said to have been postponed until further information is garnered from IOOF and the regulator.
Sources said employees in the ANZ division who had agreed to transition to IOOF had been told they would continue to be employed by the bank until at least May. That is a two-month extension of an earlier targeted March 31 deal completion date.
The deal with IOOF hangs in the balance — and is at high risk of being shelved — because the OnePath trustee board has to vote on whether it is in the best interests of members.
That will prove difficult as the banking regulator has kicked off court action seeking to ban four IOOF executives and its chairman from running a superannuation entity and it has also imposed licence conditions on the financial advice and wealth group.
The OnePath trustee board is led by Victoria Weekes, who last year fronted the Hayne royal commission and in August said it had yet to meet with IOOF, despite board notes showing it would have been “useful to have a presentation” from the buyer.
An ANZ spokesman declined to comment when asked about the transaction yesterday. The initial $975 million deal — announced in October 2017 — included two parts: the sale of the pensions and investment division and of ANZ’s financial planner dealer groups. The dealer groups have already transitioned to IOOF.
As already flagged, ANZ is separating its pensions and investments business from its life insurance division. The latter featured in a deal with global giant Zurich in late 2017.
The latest round of IOOF controversy was triggered in December when the Australian Prudential Regulation Authority came out swinging against the company.
The parties will face off in the Federal Court in July after judge Jayne Jagot set aside three weeks for the matter to be heard, following a case management hearing on March 19.
The legal action alleges IOOF chief executive Chris Kelaher, chairman George Venardos, finance boss David Coulter, company secretary Paul Vine and general counsel Gary Riordan are not fit and proper people to run a superannuation company.
After the action became public non-executive director Allan Griffiths was appointed acting IOOF chairman while wealth management boss Renato Mota became acting chief executive.
IOOF has labelled APRA’s allegations “misconceived” and said they will be “vigorously defended”.
Mr Kelaher and Mr Venardos will sit out most of 2019 on leave while the matter is contested.
There are eight licence conditions outlined in APRA’s show cause notice that IOOF has either met or is working towards before the end of the year.
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