Financial services firm IOOF plans to continue pursuing acquisition and organic growth opportunities despite being unsuccessful in its bid for Axa Australia-owned platform North.
IOOF’s plan to purchase the North investment platform was dashed when the Australian Competition and Consumer Commission dismissed National Australia Bank’s bid for the Australian and New Zealand divisions of Axa in September.
IOOF managing director Chris Kelaher said while the acquisition of North was more an opportunistic rather than strategic move, the firm planned to continue with its expansion strategy.
“While it is disappointing that we weren’t able to acquire the North platform, IOOF remains firmly focused on its existing strategy of business simplification, cost control and adviser-driven growth into IOOF’s flagship platforms,” Kelaher said in the company’s 2010 annual report.
“What can’t be ignored from this experience is the important role the investment platform plays in the wealth management industry for advisers and their clients.”
He said the firm would now follow on with its growth strategy.
“Following another record year, IOOF remains well positioned to pursue both the organic and acquisition growth opportunities we have identified in each of our four divisions,” he said.
He said the firm was also well positioned to cope with any change in the regulatory environment.
“The largest of these changes is how we may charge for our services. Regardless of the decision, IOOF is well positioned to react to any changes that are introduced as part of these reviews, with half of our business already operating under a fee-for-service regime,” he said.
“One thing is clear – despite the mooted regulatory changes to our industry, the need for Australians to seek financial advice will only increase. That is why our future is focused on adviser-driven growth.”
