APRA approved applications by IOOF Holdings Ltd and Australian Wealth Management Limited (a wholly owned subsidiary of IOOF Holdings Ltd) to hold a controlling stake in OnePath Custodians Pty Limited and Oasis Fund Management Limited. OnePath and Oasis are currently owned by Australia and New Zealand Banking Group Limited (ANZ). This decision recognizes the progress of IOOF in strengthening governance structures and management of conflicts within its existing registrable superannuation entity licensees.
These structural changes provide IOOF’s registrable superannuation entity licensees, now including OnePath and Oasis, with the necessary framework to operate independently within the IOOF group. The changes also enhance ability of the registrable superannuation entity licensees to comply with their fiduciary obligations. This decision recognizes the progress of IOOF in strengthening governance structures and management of conflicts, in response to additional license conditions imposed by APRA in December 2018. APRA notes that IOOF:
- Appointed a majority of independent directors to its registrable superannuation entity licensee boards
- Moved to legally separate its dual regulated entities (on track to be completed by December 31, 2019)
- Implemented a dedicated business function to support IOOF’s APRA-regulated entities.
In accordance with section 29HD of the Superannuation Industry (Supervision) Act 1993 (SIS Act), APRA concluded that it has no reason to believe that, because of IOOF’s controlling stake in OnePath or Oasis, the registrable superannuation entity licensees may be unable to satisfy one or more of the trustee’s obligations contained in a covenant set out in the SIS Act. APRA was granted the power to approve or refuse an application to own or control a registrable superannuation entity licensee under section 29HD of the Superannuation Industry (Supervision) Act 1993 (SIS Act) in April this year.
Related Link: Press Release
Keywords: Asia Pacific, Australia, Banking, Insurance, Superannuation, ANZ, Oasis Fund Management, OnePath Custodians, IOOF Holdings, Operational Risk, APRA
Previous ArticleSRB Holds Annual Conference, Reflects on Turning Policy into Action
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting
EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
The EBA Single Rulebook question and answer (Q&A) tool updates for this month include answers to ten questions.
ESMA updated the set of questions and answers (Q&A), along with the reporting instructions and an XML schema for the templates set out in the technical standards on disclosure requirements, under the Securitization Regulation.
EU published Regulation 2021/337, which amends the Transparency Directive (2004/109/EC), regarding the use of the single electronic reporting format for annual financial reports.
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.