APRA imposes new conditions on AMP’s super businesses.

APRA AMP Limited superannuation

14 June 2019
| By Mike |
image
image
expand image

The Australian Prudential Regulation Authority (APRA) has imposed new conditions on AMP Limited’s superannuation businesses including board renewal and the removal of conflicts of interest

The regulator announced today that it had issued directions and additional licence conditions to AMP Superannuation Limited and N.M. Superannuation Proprietary Limited.

It said it had imposed the directions and additional licence conditions to address a range of concerns regarding AMP Super’s compliance with the Superannuation Industry (Supervision) Act 1993 (SIS Act).

APRA said the action arose from issues identified during APRA’s ongoing prudential supervision of AMP Super, along with matters that emerged during the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

The regulator’s announcement said the new directions and conditions were designed to deliver enhanced member outcomes by requiring AMP Super to make significant changes to its business practices.

“Areas identified for improvement include conflicts of interest management, governance and risk management practices, breach remediation processes, addressing poor risk culture and strengthening accountability mechanisms. The directions also require AMP Super to renew and strengthen its board,” the APRA announcement said.

“Additionally, APRA requires AMP Super to engage an external expert to report on remediation and compliance with the new directions and conditions."

The announcement said this was the second time APRA had used the broader directions power that was granted in April following the passage of the Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No 1) Bill 2019. It also demonstrates APRA’s commitment to embedding the “constructively tough” enforcement appetite outlined in April’s new Enforcement Approach.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 1 hour ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

2 days 23 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 2 hours ago