ASIC has reported on its inquiry into IOOF Holdings Limited and its subsidiaries.

ASIC undertook the review after a former employee of IOOF said staff members were involved in insider trading.

The whistleblower said staff had traded in securities prior to the release of IOOF research reports relating to those securities.

ASIC's market surveillance team has now determined that the release of the research reports had no material effect on the price of the relevant securities, and there was no other evidence to warrant a formal investigation.

“As such we have decided to take no further action in relation to these allegations,” the regulator said in a statement.

But ASIC's inquiries also included a review into allegations of corporate governance and licensee breaches by IOOF.

This review identified a number of concerns relating to IOOF's compliance arrangements, breach reporting, management of conflicts of interest, staff trading policy, disclosure, whistleblower management and protection and cyber security.

“We have raised these concerns with IOOF. We have also advised IOOF that in our view the corporate culture at that time within IOOF contributed to these issues occurring,” ASIC said.

At the same time as ASIC was performing its inquiries, IOOF brought in PricewaterhouseCoopers to conduct an independent review of its regulatory breach reporting policy and procedures as well.

ASIC claims IOOF has made significant changes to their policies and procedures as a result.

“While ASIC welcomes such initiatives and steps taken by IOOF to rectify these issues, ASIC has also reached an agreement with IOOF to engage an external compliance consultant to conduct an expanded, broader and more comprehensive review of compliance arrangements within all IOOF business units,” the regulator said.

“ASIC will continue to monitor and work cooperatively with IOOF and its board to ensure the necessary changes are properly effected.”