The barrister for IOOF’s former chairman, George Venardos, has raised concerns that providing documents in response to the banking regulator’s lawsuit raises the risk of handing over material that could be used in separate regulatory action.
The Australian Prudential Regulation Authority (APRA) took a rare step last year when it sought to have Mr Venardos, former IOOF chief executive Chris Kelaher and others from the wealth manager banned from working in the superannuation sector. Hearings in the case are due to start in July.
In a Federal Court procedural hearing on Monday, barristers debated how to deal with the possibility that some of the materials APRA is seeking from Mr Vernados could end up being used by the Australian Securities and Investments Commission (ASIC) in any potential separate action.
ASIC has not launched legal action against IOOF or its directors. However, there has been speculation the board could face potential enforcement action from the watchdog, which has vowed to become more aggressive in the courts.