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
Next ArticleECB Publishes Release 4.2 of BIRD Database
The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.
The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).
The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.
The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).
The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.
The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).
HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.