APRA imposes licence conditions on Insignia super entities
The Australian Prudential Regulation Authority (APRA) has imposed additional licence conditions on trustees of superannuation funds within the Insignia Group.
This included I.O.O.F. Investment Management Limited (IIML), Nulis Nominees (Australia) Limited (NULIS), OnePath Custodians Pty Limited (OPC) and Oasis Fund Management Limited (Oasis).
The various trustees had two million members and over $185 billion in funds under management combined.
Under the terms of the new licence conditions, which come into force from 3 November, the Insignia Trustees must:
- Enhance their governance in relation to member outcomes, oversight of service providers, risk, compliance and managing conflicts of interest;
- Appoint an independent expert to examine the operational effectiveness of their governance, accountability and risk management frameworks and practices; and
- Rectify areas of concern with input from the independent expert.
Additionally, APRA required:
- IIML to comply with its legal obligation in relation to the transfer of member benefits; and
- OPC to appoint an independent expert to provide root cause analysis and assurance in relation to the breach of APRA’s direction.
APRA deputy chair, Margaret Cole, said sound risk management and governance frameworks were integral to the management of a well-run super fund.
"As the Insignia Trustees have grown substantially in recent years, it is important their governance and risk frameworks remain fit for purpose – especially given the group’s increased size and complexity.
“We particularly want to see improvements in the Insignia Trustees' whole system of governance and risk management, including practices, processes and frameworks, so that they are operating consistently and effectively.”
In a statement to the Australian Securities Exchange (ASX) following APRA’s announcement, Insignia said: “Insignia Financial is committed to supporting its superannuation trustees to uplift their governance and risk management frameworks and practices to meet APRA’s requirements.
“Implementation of a number of actions required under the additional licence conditions has already commenced, including work to uplift products and systems. Insignia Financial is confident this process will support its ambition to create financial wellbeing for all Australians.”
AUTHOR
Laura Dew
Recommended for you
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
The Senate economics legislation committee has recommended Schedule 1 of the Delivering Better Financial Outcomes legislation be passed as it is a “faithful implementation” of the recommendations.
Treasurer Jim Chalmers has handed down his third budget, outlining the government’s macroeconomic forecasts and changes to superannuation.
