Invest with confidence in your product provider
20 March 2016
This flyer answers some questions you may have about investing through IOOF. There are a number of regulations, processes and systems in place to help you gain confidence in dealing with IOOF.
Who controls where your money is invested when you invest through IOOF's platform products?
You have control over the selection of investment options when you invest through an IOOF platform. You and your financial adviser work together to choose underlying investments that are appropriate to your financial objectives, needs and circumstances.
The investments you choose will determine the return you will receive as well as the level of risk you're taking on, so it's important to choose carefully. There are literally hundreds of investments to choose from on IOOF's investment menus and not all of them will suit your needs. In accordance with the law, the Operator/Trustee retains a discretion in relation to investments in order to protect investors/members and the fund as a whole.
Who monitors whether IOOF's systems and processes comply with relevant regulations?
IOOF is subject to government regulation and oversight to monitor compliance with relevant regulations. Two of the bodies who are most involved in monitoring IOOF are the Australian Securities and Investment Commission (ASIC) and the Australian Prudential Regulation Authority (APRA).
ASIC is Australia's corporate, markets and financial services regulator. APRA is the prudential regulator of superannuation funds, banks, credit unions and life companies including friendly societies. Both are responsible for ensuring that companies like IOOF adhere to relevant regulations.
Our own internal procedures and systems are also focused on ensuring compliance with relevant regulatory requirements and prudent management of your investment.
IOOF and the super funds and investment services within the group are audited annually by a major external audit firm and a copy of the audit report is lodged with the relevant regulator/s. Copies of the relevant audit reports are available on request.
We are required by law to have an internal complaints handling process in case you have a complaint about us.
We are also required to be a member of an external dispute resolution body that you may refer to in the event that we are unable to resolve a complaint to your satisfaction.
Where can you find more information regarding how and where your money is invested?
Information about how and where your money is invested can be found in the relevant product disclosure statements (PDSs)/IDPS guides. It's important to remember that there is a PDS/IDPS guide for the IOOF product you use as well
as separate PDSs for each of the underlying managed investments you choose.
The PDSs for the underlying managed investments are produced by the fund managers for those investments but are also made available through the IOOF website for your convenience.
Your financial adviser will provide you with all of the PDSs you need and it's important that you review them so that you understand how and where your money is invested.
Your adviser may also provide you with additional information about your investments, such as fact sheets or research reports.
What if IOOF went bankrupt?
The corporate equivalent of bankruptcy is known as insolvency and it's natural to consider what would happen to your investments in the unlikely event that IOOF was to become insolvent. In particular, you may wonder whether the money that IOOF administers on your behalf would be used to meet the debt obligations of IOOF.
It's important to understand that IOOF has a legal obligation to keep your investments separate from the funds of IOOF. External audits are conducted annually to confirm that your funds are kept separate from those of IOOF. This means that your investments could never be used to meet IOOF's obligations and the creditors and shareholders of IOOF would have no access to them. IOOF does not, however, guarantee the performance of investments or return of capital following unfavourable movements in investment markets.
What if a major disaster seriously disrupted operations at IOOF?
Although major disasters are thankfully rare, it's important to be prepared for them. IOOF is required by law to have a comprehensive disaster recovery plan in place. The objective of this plan is to ensure that our core systems and data are secure and able to be restored after a major incident.
We are also required to have in place a business continuity plan to enable key business operations (such as answering your queries and processing transactions) to be re-started as soon as possible following a major disaster.
Our disaster recovery and business continuity plans are documented and reviewed regularly to ensure they continue to be appropriate.
Where can you get more information?
If you have any questions about your investments or IOOF, please speak with your financial adviser. If you do not have a financial adviser, IOOF has a team of qualified, professional financial advisers who can help you start planning your financial future. To arrange an appointment, visit the 'Find a financial adviser' page at our website www.ioof.com.au or contact the IOOF client services team. Our dedicated client services team is available to speak to you Monday to Friday between 8.30am – 6.00pm. Phone us on 1800 062 963 or email email@example.com.