Will APRA’s latest AMP hit impact super outsourcing tenders?

18 June 2019
| By Mike |
image
image
expand image

With around seven corporate superannuation outsourcing mandates currently in market, last week’s decision by the Australian Prudential Regulation Authority (APRA) to impose additional licence conditions on AMP’s superannuation businesses could not have come at a more awkward time.

Money Management had it confirmed by tender consultants that at least seven corporate superannuation outsourcing tenders are currently in process in the market, with AMP Limited involved in the process as either the current outsource provider or one of the providers being considered as an outsource destination.

However, while those outsourcing processes were underway, APRA announced on Friday that it had imposed directions and additional licence conditions on AMP’s superannuation businesses – AMP Superannuation Limited and N.M. Superannuation Proprietary Limited.

In doing so, the regulator said the new directions and conditions were designed to deliver enhanced member outcomes and said the areas which had been identified included conflicts of interest management, governance and risk management practices, breach remediation processes, addressing poor risk culture, and strengthening accountability mechanisms.

AMP responded by stating that it had accepted the APRA conditions and was well-advanced in addressing the issues raised by the regulator.

However, the tender consultants said that while AMP had been working hard in the aftermath of the negative findings of the Royal Commission, there was no avoiding the fact that the latest APRA announcement would likely impact perceptions and outcomes.

Among the AMP corporate superannuation clients which were seen to be at risk was Australia Post, which had not yet announced its future arrangements.

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. ...

11 months ago
Kevin Gorman

Super director remuneration ...

11 months 1 week 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 ...

11 months 1 week ago

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 Co...

19 hours ago

Demand from institutional investors was the main driver of growth in Australia’s responsible investment (RI) market in 2023, as the industry continued to gain momentum....

19 hours 26 minutes ago

In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges....

20 hours 25 minutes ago