APRA lifts N.M. Super's additional licence conditions

APRA lifts N.M. Super’s additional licence conditions | Insurance Business Australia

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APRA lifts N.M. Super’s additional licence conditions

After resolving risk management issues, N.M. Super has its special licence conditions lifted by APRA

Insurance News

By
Althea Javellana

In a significant regulatory action, the Australian Prudential Regulation Authority (APRA) has recently lifted additional licence conditions imposed on N.M. Superannuation Proprietary Limited, marking the end of a stringent oversight period initiated due to serious governance and risk management lapses.

N.M. Super is responsible for managing the AMP Super Fund and Wealth Personal Superannuation and Pension Fund, boasting combined assets of approximately $114 billion. The initial imposition of enhanced licence conditions by APRA back in 2019 was sparked by multiple concerns regarding the trustee’s adherence to the stringent standards set by the Superannuation Industry (Supervision) Act 1993. These issues surfaced both from ongoing prudential surveillance by APRA and from revelations during the Royal Commission into Misconduct in the Banking, Superannuation, and Financial Services Industry.

In response to regulatory pressures, N.M. Super committed to a court-enforceable undertaking (CEU) in 2021, which outlined a robust plan to address and rectify the governance and risk management deficiencies identified. This undertaking aimed to cover and rectify not only the specific issues identified in the 2019 enforcement actions but also additional related matters.

Following extensive reviews and subsequent investigations, APRA has now confirmed that N.M. Super has fulfilled all the conditions of the undertaking, effectively addressing the deficiencies within the specified time frames. This comprehensive rectification work included remediation efforts for members who were adversely affected by the lapses in governance and risk management.

Margaret Cole, deputy chair of APRA, said the regulatory body was committed to strengthening the resilience and operational capabilities of entities under its supervision.

“Ensuring that APRA-regulated entities can effectively identify, manage, and rectify risks is crucial for maintaining financial stability and protecting the interests of their members and customers,” she said.

The revocation of these additional conditions signifies a return to normalcy for N.M. Super, freeing it from the enhanced scrutiny it had been subjected to. However, APRA will continue its engagement with the trustee to ensure it maintains the high standards of governance and risk management required for an institution of its scale and complexity.

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