Insignia Financial settles class action

Insignia Financial Ltd (ASX:IFL) has announced the settlement of a class action involving OnePath Custodians Pty Ltd (OPC), Zurich Australia Limited, and ANZ Banking Group Limited. The agreement, totaling $50 million, with OPC contributing $22 million, is subject to court approval. The class action, initiated by Slater and Gordon in December 2020, pertains to historical issues concerning interest rates paid on members' investments and the payment of grandfathered commissions to financial advisers. The settlement will be expensed in 1H25 and excluded from Underlying Net Profit After Tax.

Executive Commentary on Settlement

The settlement of the class action reflects our commitment to resolving legacy issues and ensuring the best outcomes for our members. We are pleased to have reached an agreement with the applicants, and while this settlement is made without any admission of liability or wrongdoing, we believe it is in the best interest of all parties involved. We will continue to focus on delivering quality financial services and upholding the trust placed in us by our clients and stakeholders.

Summary of Settlement and Outlook

Insignia Financial Ltd (ASX:IFL) has successfully settled a class action, demonstrating its dedication to addressing historical issues and maintaining a strong financial standing. The $50 million agreement, with OPC contributing $22 million, underscores the company's commitment to resolving legacy matters. The settlement, subject to court approval, relates to historical issues regarding interest rates paid on members' investments and the payment of grandfathered commissions to financial advisers. The company has stated that the settlement will be expensed in 1H25 and excluded from Underlying Net Profit After Tax. Insignia Financial remains focused on providing quality financial services and investing in technology to meet the evolving needs of its clients and advisers. The company's proactive approach to resolving legal matters and its ongoing commitment to enhancing its services position it for continued growth and success in the wealth management sector.