The IOOF Limited (ASX: IFL) share price jumped 8% in trade today to $5.27 thanks to investors bidding the financial planner and wealth manager higher on the back of the final report from the Hayne Royal Commission.
A lot of market commentators feared that IOOF's hybrid financial services business model would be a target for root and branch reform as a result of the Royal Commission, although it didn't turn out that way.
The Royal Commission didn't recommend banning what's known in the industry as "vertical integration" where financial planners sell their own employer's products in what could be a perceived conflict of interest.
The lack of specific criticisms of IOOF is also a positive for the financial planner as it aims to get its $1 billion deal to acquire Australia & New Zealand Banking Group's (ASX: ANZ) OnePath financial planning business over the line, including the required trustee approval from OnePath subsidiaries.
Despite today's share price bounce the IOOF share price is still down nearly 50% over the past year after the prudential regulator APRA moved to have its CEO, COO, and two directors barred from working on APRA regulated superannuation entities.
Therefore IOOF is a long way from being out of the regulatory woods yet.
