IOOF Holdings (ASX:IFL) Managing Director, Christopher Kelaher and Chairman, George Venardos have agreed to step down from their respective positions effectively immediately.
The resignations come after the Australian Prudential Regulation Authority (APRA) announced it was bringing proceedings against the company last Friday.
The regulator seeks to impose licence conditions on IOOF’s APRA regulated entities, along with court proceedings in relation to alleged breaches of the Superannuation Industry.
APRA's decision comes after IOOF and Mr Kelaher were accused by the Royal Commission of not understanding the responsibilities of being a superannuation trustee or the director of a company that operates a trustee business.
In a statement to the ASX, IOOF says it believed the allegations were "misconceived" and the company and its executives would "vigorously defend" the proceedings.
Shares in IOOF Holdings (ASX:IFL) closed about 36 per cent lower to $4.60 on Friday.