APRA has imposed additional licence conditions on several Insignia Financial superannuation trustees.
The conditions apply to IOOF Investment Management, Nulis Nominees, OnePath Custodians and Oasis Fund Management.
The trustees are owned by Insignia and have approximately 2 million members and over $185 billion in funds under management between them.
The new registrable superannuation entity licence conditions are designed to address governance and risk management deficiencies that were either identified during APRA’s ongoing prudential supervision of the Insignia Trustees or self-reported.
This includes a breach by IOOF IM of its obligation to undertake a timely transfer of member benefits to other funds and a breach by OnePath of a previous APRA direction.
Under the terms of the new licence conditions which are already in force, the Insignia trustees must:
- Enhance their governance in relation to member outcomes, oversight of service providers, risk, compliance and managing conflicts of interest;
- Appoint an independent expert to examine the operational effectiveness of their governance, accountability and risk management frameworks and practices; and
- Rectify areas of concern with input from the independent expert.
Additionally, APRA requires:
- IOOF IM to comply with its legal obligation in relation to the transfer of member benefits; and
- OnePath to appoint an independent expert to provide root cause analysis and assurance in relation to the breach of APRA’s direction.
The new licence conditions partly supersede additional conditions imposed on IOOF IM in December 2018 and NULIS in August 2020.
In a statement to the ASX on behalf of CEO Renato Mota, Insignia said it is committed to uplifting standards to meet APRA requirements.