POWERED BY MOMENTUM MEDIA
Super trustee receives additional licence conditions from APRA
The Australian Prudential Regulation Authority (APRA) has imposed additional licence conditions on Diversa Trustees to address prudential concerns and recommended a third-party review of its operating model.
These new conditions were designed to address:
- The adequacy of Diversa’s resources to manage risks and meet regulatory and compliance obligations;
- Heightened inherent business risks driven by the complex structure and operations of Diversa; and
- Concerns regarding the ability of Diversa to deliver quality member outcomes, including in relation to high fees and poor investment performance.
Diversa had approximately 320,000 members and more than $11 billion in funds under management.
The additional licence conditions also sought to codify recommendations of a third-party review of Diversa’s operating model, which included matters relating to governance, risk management, and outsourcing and oversight.
Under the terms of the new licence conditions, which came into force on 23 January, Diversa was required to:
- Enhance its governance and risk frameworks, with a particular focus on third party service providers;
- Improve member outcomes through the development and implementation of a plan to address persistently high fees; and
- Conduct an independent review to ensure that APRA’s concerns have been adequately addressed.
APRA deputy chair, Margaret Cole, said the licence conditions set baseline expectations for independent trustees in the industry.
"The inherent complexity of the independent trustee model, with one trustee having oversight over a substantial number of funds, sub-funds and products, requires significant resourcing to ensure quality member outcomes.
"These licence conditions set the minimum standard for governance, risk, outsourcing and oversight, and member outcomes to ensure that Diversa is in the best position to continue as a trustee in the long term.”
In December 2022, Diversa received an infringement notice from the Australian Securities and Investments Commission (ASIC) regarding alleged greenwashing.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
