The IOOF Holdings Limited (ASX: IFL) share price is up 11% to $6.65 today after analysts upgraded their ratings on the business after its huge legal victory over the superannuation regulator APRA.
Back in December 2018 APRA shocked the market and IOOF by applying to have five of its senior management team disqualified from working on superannuation related entities. It also sought to impose strict new license conditions on IOOF for what it claimed were serious breaches of the financial services laws and IOOF's duty to act in the best interests of superannuation members.
However, on 20 September 2019 a Federal Court ruled the five accused individuals did not contravene the Superannuation Supervision Act and declined to disqualify them.
It also awarded costs in favour of IOOF in an embarrassing verdict for a regulator that appears to have overreached its powers in part due to its annoyance at what it saw as a lack of respect from IOOF.
At the time of making its announcement and application for disqualification APRA deputy chair Helen Rowell complained: "APRA's efforts to resolve its concerns with IOOF have been frustrated by a disappointing level of acceptance and responsiveness to the issues raised by APRA, which is not the behaviour we expect from an APRA-regulated entity."
"Furthermore, the individuals included in the proceedings have shown a lack of understanding of their personal and trustee obligations under the SIS Act and at law, and a lack of contrition in relation to the breaches of the SIS Act identified by APRA."
Unfortunately for APRA the court has ruled it overstepped the mark in exercising its powers and would have been better off seeking other remediation from IOOF.
Elsewhere in another court case making headlines TGP Telecom Ltd (ASX: TPM) and Vodafone Australia are taking on the ACCC in an attempt to force through the telcos' proposed merger.
