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.
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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