IOOF  | Annual Report 2012 Financial advice division Bridges Financial Services Pty Ltd, a subsidiary of IOOF  Holdings Ltd, is currently defending complaints made against  the company in its capacity as Australian Financial Services  Licensee. In aggregate these total approximately $164,000.  Professional indemnity insurance cover is held to meet any  professional liabilities that may arise for individual claims above  the applicable excess, the Group would be potentially liable for  less than $98,000 of these claims. SMF Wealth Management Pty Ltd, a subsidiary of IOOF  Holdings Ltd, is currently defending complaints made against  the company in its capacity as Australian Financial Services  Licensee. In aggregate these total approximately $226,000.  Professional indemnity insurance cover is held to meet any  professional liabilities that may arise for individual claims above  the applicable excess, the Group would be potentially liable for  less than $125,000 of these claims. Wealth Managers Pty Ltd, a subsidiary of IOOF Holdings Ltd,  is currently defending complaints made against the company  in its capacity as Australian Financial Services Licensee. In  aggregate these total approximately $1,264,000. Professional  indemnity insurance cover is held to meet any professional  liabilities that may arise for individual claims above the  applicable excess, the Group would be potentially liable for  $550,000 of these claims. Consultum Financial Advisers Pty Ltd, a subsidiary of IOOF  Holdings Ltd, is currently defending complaints made against  the company in its capacity as Australian Financial Services  Licensee. In aggregate these total approximately $2,759,000.  Professional indemnity insurance cover is held to meet any  professional liabilities that may arise for individual claims above  the applicable excess, the Group would be potentially liable for  less than $190,000 of these claims. Lonsdale Financial Group Ltd, a subsidiary of IOOF Holdings  Ltd, is currently defending complaints made against the  company in its capacity as Australian Financial Services  Licensee. In aggregate these total approximately $2,850,000.  Professional indemnity insurance cover is held to meet any  professional liabilities that may arise for individual claims above  the applicable excess, the Group would be potentially liable for  less than $278,000 of these claims. Buyer of last resort facility Bridges Financial Services Pty Ltd Bridges Financial Services Pty Ltd (Bridges), a subsidiary of IOOF  Holdings Ltd, has a contractual agreement with its planners  to provide a put option “Buyer of Last Resort Facility” should  a planner wish to sell their business and on the satisfaction of  certain specific requirements. Other contingent liabilities exist in relation to claims and/or  possible claims which, at the date of signing these accounts,  have not been resolved. An assessment of the likely loss to the  Company and its controlled entities has been made in respect  of the identified claims, on a claim by claim basis, and specific  provision has been made where appropriate. The Group  does not consider that the outcome of any other current  proceedings, either individually or in aggregate, is likely to  materially affect its operations or financial position. Litigation is in process against two of the company’s  subsidiaries relating to a change of control clause wherein  the counterparty is seeking relief, including damages. The  information usually required by AASB 137 is not disclosed on  the grounds that it can be expected to seriously prejudice the  outcome of the litigation. The directors are of the opinion that  the claim can be successfully defended by the Company. Other The terms and conditions provide that where the specific  requirements have been met, a predetermined purchase price  will be payable for the business as agreed by all parties over  a predetermined period. Where certain terms and conditions  have not been met, the predetermined purchase price will  be discounted accordingly. As at 30 June 2012, Consultum  Financial Advisers Pty Ltd has not received any requests from  planners that satisfy the specific requirements to exercise its  obligation. Consultum Financial Advisers Pty Ltd, a subsidiary of IOOF  Holdings Ltd, and IOOF Holdings Ltd independently have  contractual agreements with its planners to provide a put  option “Buyer of Last Resort Facility” should a planner wish to  sell their business and on the satisfaction of certain specific  requirements. Consultum Financial Advisers Pty Ltd As at 30 June 2012, Bridges had received requests from  planners which satisfied requirements to exercise its  obligation. The resale value of such a business purchased may  differ from the cost to Bridges. Where confirmation notices  have been received Bridges has a fixed obligation to purchase  the businesses, the revised aggregate value of this fixed  obligation is $1.6m. The terms and conditions provide that where the specific  requirements have been met, the purchase price payable for  the business is a market price mutually agreed with Bridges.  Where agreement with Bridges is not reached, the market  price is to be determined by an independent price expert. page 113