The Australian Prudential Regulation Authority (APRA) has imposed additional licence condition 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.
Under the terms of the new licence conditions, which come into force from today, the Insignia Trustees must:
Additionally, APRA required:
APRA deputy chair, Margaret Cole, said sound risk management and governance frameworks were integral to the management of a well-run superannuation 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.”
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
Add new comment