APRA lifts N.M. Super’s additional licence conditions
The Australian Prudential Regulation Authority (APRA) has removed additional licence conditions imposed on N.M. Superannuation Proprietary Limited (N.M. Super) in response to governance and risk management concerns.
N.M. Super, which is part of the AMP group of companies, controls the AMP Super Fund and Wealth Personal Superannuation and Pension Fund with combined estimated net assets of $114 billion.
APRA initially issued directions and additional licence conditions to N.M. Super in 2019 to address a range of concerns regarding the trustee’s compliance with the Superannuation Industry (Supervision) Act 1993. The action arose from issues identified during APRA’s ongoing prudential supervision, along with matters that emerged during the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
In 2021, after conducting further investigations, APRA agreed to accept a court enforceable undertaking (CEU) from N.M. Super pledging to rectify governance and risk management deficiencies. The undertaking covered specific matters additional to those addressed by APRA’s 2019 enforcement action.
APRA is now satisfied that N.M. Super has completed rectification work, including remediation of members affected by the conduct dealt with by the CEU, in accordance with the commitments and timeframes set out in the undertaking. In recognition of this progress APRA has decided to revoke the additional licence conditions. Notwithstanding, APRA will continue to engage with this trustee to ensure that it remains enabled and capable to deliver against the standards of governance and risk management that we expect of a trustee of its size and complexity.
Deputy Chair Margaret Cole said: “Strengthening the ability of APRA-regulated entities to identify, manage and respond to risk is key to enhancing operational and financial resilience, as well as financial stability. APRA will continue to engage the full range of supervisory and enforcement responses to ensure that regulated entities meet their obligations and deliver on their promises to customers, members and policyholders”.
The removal of the licence conditions is effective from today.
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The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding around $9 trillion in assets for Australian depositors, policyholders and superannuation fund members.