Link’s UK troubles reflected in ASIC action

Major superannuation funds administrator, Link Administration Holdings, has reacted to Australian regulatory concerns about its exit from its UK business by restating its 2023 half year and full year financial reports.

The Australian Securities and Investments Commission (ASIC) said that Link had moved on the issue after ASIC raised concerns that the company’s financial reports contained material misstatements in the carrying value of Fund Solutions business assets, provisions and expenses in relation to its settlement with the UK Financial Conduct Authority.

“As a result, Link Group has decided to amend its accounting treatments that relation to the financial impact of settlement with the FCA and impairment of the FS business,” ASIC said in a statement.

“Link Group has advised the restatement will result in a $50 million increase in its half year statutory loss and a $169 million decrease in its full year statutory loss in 2023. Link Group also noted its 2024 forecast for statutory profit and loss is reduced by $169 million due to the amendments,” ASIC said.

“The correction will be disclosed in Link Group’s combined financial reports for the half-year ending 31 December 2023 and financial year ending 30 June 2024.”

“ASIC reminds preparers of financial reports that consideration should be given to adequacy of provisions for liabilities and valuation of assets.”