(Reuters) - Australian wealth manager IOOF Holdings Ltd said on Thursday that Allan Griffiths was elected non-executive chairman and that the firm's former managing director, Christopher Kelaher, would leave the company by "mutual agreement."
Griffiths has been acting chairman since December last year, when Chairman George Venardos, along with Kelaher, stepped aside to contest disqualification proceedings against them launched by the Australian Prudential Regulation Authority (APRA).
"The company has experienced difficult circumstances and disruption during the last six months," Griffiths said. "However, the efforts of our people and their commitment to our clients, IOOF and to change is delivering positive results."
The Melbourne-based firm said Kelaher’s resignation from the board was effective immediately and that his employment would cease on July 2.
Griffiths said the acting CEO, Renato Mota, would continue in that role and the board would work to finalise the succession planning process.
IOOF's reputation was damaged by an inquiry into financial-sector misconduct last year. APRA said it had identified three occasions when units of IOOF had used money belonging to pension fund customers to compensate them for losses caused by the company.
IOOF said in December that the allegations were misconceived and that it would vigorously defend against them. It added that it had already addressed or was addressing APRA's other concerns.
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Matthew Lewis)
