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Retirement

Big name in super lands in hot water

By Cameron Micallef · June 17 2019
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APRA

Big name in super lands in hot water

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By Cameron Micallef · June 17 2019
Reading:
egg
egg
egg
APRA

For just the second time in the history of the Australian Prudential Regulation Authority, it has issued direction and additional licence conditions to AMP Superannuation and NM Superannuation Proprietary Limited (collectively AMP Super).

The powers the Australian Prudential Regulation Authority(APRA) used are the broader direction powers 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.

In a statement AMP states it will fully implement the direction and additional conditions. We are working constructively with APRA on this matter and have already taken action on a number of the issues raised.

 

Specifically, APRA wants AMP to improve conflicts of interest management, governance and risk management practices, breach remediation processes, addressing poor risk culture and strengthening accountability mechanisms. The direction also requires AMP Super to renew and strengthen its board.

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Additionally, APRA will require AMP Super to engage an external expert to report on the remediation and compliance with the new directions and conditions to ensure that AMP complies with APRA.

In a statement AMP states it will fully implement the direction and additional conditions. We are working constructively with APRA on this matter and have already taken action on a number of the issues raised.

In addition, in 2018, AMP significantly reduced fees on its MySuper products, benefiting approximately 600,000 members.

APRA stated that it’s a demonstration of its commitment to embedding the constructively tough enforcement appetite. This follows a review into the organisation in November, in which it stated, “The approach sets out how APRA will use its enforcement powers to prevent and address serious prudential risks and to hold entities and individuals to account.”

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Big name in super lands in hot water
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About the author

Cameron is a journalist for Momentum Media's Nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

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About the author

Cameron is a journalist for Momentum Media's Nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

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