Extra best interests licence condition imposed on Suncorp

2 July 2020
| By Jassmyn |
image
image
expand image

The Australian Prudential Regulation Authority (APRA) has imposed a best interests licence condition on Suncorp Portfolio Services Limited (SPSL) after an investigation was referred by the Hayne Royal Commission.

The investigation looked into the registrable superannuation entity (RSE) licensee’s delay in transferring members into its lower fee MySuper product until just before the legal deadline.

This comes at the same time the regulator imposed the same licence condition on Colonial First State Investment Limited.

APRA found that SPSL did not breach the Superannuation Industry (Supervision) Act 1993 but raised concerns about the adequacy of SPSL’s internal processes for demonstrating how members’ best interests were considered and prioritised.

The new licence condition requires SPSL to document how it considers and prioritises members’ interests when it makes decisions that materially affect their interests.

APRA has also issued directions to SPSL requiring it to:

  • Obtain independent expert verification of the analysis and methodology that will be used to determine the remediation of members affected by the delay in transferring to MySuper products;
  • Notify affected members of the remediation plan; and
  • Make a public statement in respect of the plan.

Commissioner Hayne also referred SPSL’s payment of tax surpluses to Suncorp Life to APRA to consider. APRA said it would be considering this issue further as part of a broader thematic review into trustee reserving practices in the superannuation industry, before deciding what further action may be necessary.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year ago
Kevin Gorman

Super director remuneration ...

1 year ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year ago

The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation ...

4 hours ago

Super funds had a “tremendous month” in November, according to new data....

4 days 3 hours ago

Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion....

4 days 8 hours ago