The IOOF Holdings Limited (ASX: IFL) share price is one to watch this morning as it received a boost in Federal Court.
What did IOOF announce this morning?
IOOF confirmed that the Australian Prudential Regulation Authority (APRA) has declined to appeal the recent Federal Court decision regarding IOOF.
The IOOF share price fell lower in December 2018 as APRA brought proceedings against IOOF, two of its APRA-regulated entities and 5 individuals.
Following the 2018 Financial Services Royal Commission, APRA applied to have several IOOF senior executives disqualified from the industry.
However, on 20 September the Federal Court ruled that IOOF had not contravened the Superannuation Industry (Supervision) Act.
Today was the last day for APRA to appeal that verdict, but the banking regulator has declined to do so in a big win for IOOF.
Why did the IOOF share price surge yesterday?
The IOOF share price surged 10.85% higher yesterday after providing an update on its ANZ Wealth Pension and Investments (P&I) acquisition.
IOOF agreed to a lower purchase price of $825 million with Australia and New Zealand Banking Group Ltd (ASX: ANZ).
The Aussie wealth manager is focusing on completing the acquisition by 31 December 2019, and not later than 30 June 2020.
IOOF is also waiting on transaction approval from APRA, which was lodged on 4 October 2019.
Where to now for the IOOF share price?
IOOF shares have been climbing higher in somewhat of a surprise on the ASX so far this year.
The company’s shares have already climbed 5.11% higher in morning trade, and this latest news is sure to be a further boost.
With a dividend yield of 5.32% p.a. and a $2.5 billion market cap, IOOF could be in the buy zone.
It’s a busy period for IOOF at the moment as it continues its rebuild and regulatory requirements on all fronts.
While the IOOF share price surged higher yesterday, it looks like it will be one to watch on the ASX today too.
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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.