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