APRA has ordered Mercer Super to meet additional licence conditions after “risk management and compliance management deficiencies” were identified by the regulator.
The deficiencies came up as a part of APRA’s ongoing supervision of the Mercer Super trustee, which included a prudential review conducted in October 2023. Mercer Super has subsequently acknowledged breaches of several prudential standards.
Under the terms of the new licence conditions, which came into force from 27 May 2024, Mercer Super must:
- Develop and implement a remediation plan in conjunction with an independent expert that addresses the deficiencies identified by APRA;
- Appoint an independent third party to complete an operational effectiveness review of Mercer Super’s risk management and compliance frameworks, following the completion of the remediation plan; and
- evelop a plan to remedy any deficiencies identified in the operational effectiveness review.
In a media statement, Mercer Super said it is “fully committed to taking action on the issues raised”.
“We had a program of work underway to accelerate the transformation of our risk management culture and practices, our business continuity planning and management of service providers,” the statement said.
“We believe our fund will be stronger and more resilient as a result.”