ANZ chief executive, Shayne Elliott has admitted that matters raised during the Royal Commission around allegations of misconduct by IOOF Limited made him think twice about selling ANZ’s OnePath business to IOOF.
Answering questions during a House of Representatives Economics Committee review of the Four Major Banks, Elliott said, however, that he now believed it was appropriate for the trustees of the OnePath Superannuation funds to make on the sale.
Asked what steps he took to satisfy himself that the sale of the OnePath business to IOOF was worth pursuing, Elliott pointed to the higher levels of due diligence which had been put in place when matters were raised about IOOF in the Royal Commission.
He said that the period of the transaction had been lengthened as a result of that due diligence.
“Of course they [the Royal Commission issues] gave us pause,” Elliott said. “We increased the level of diligence. We asked more questions. We sought more assurance from IOOF that they were able to meet their obligations. And so the process took a lot longer, absolutely.”
“But we were able to, through that process and through their own learning and commitment to change, give ourselves—and I am being broad here with ‘ourselves’; so, the trustees and the bank were given—comfort that it was maintained to be in the best interest of the fund holders,” he said.
