APRA Issues Directions to Strengthen Governance in Superannuation
APRA issued directions and additional license conditions to AMP Superannuation Limited and N.M. Superannuation Proprietary Limited (collectively AMP Super). The directions and conditions are 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. APRA has 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). The action arises from issues identified during APRA’s ongoing prudential supervision of AMP Super, along with matters that emerged during the Royal Commission review into misconduct in the banking, superannuation, and financial services industry. This is the second time APRA 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.
Related Link: Media Release
Keywords: Asia Pacific, Australia, Insurance, Pensions, Superannuation, AMP Super, Governance, Risk Culture, Accountability, Operational Risk, Conduct Risk, APRA
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