The Australian Prudential Regulation Authority (APRA) has issued directions and additional licence conditions to AMP Super to address a number of concerns, including conflict of interest and risk management.
APRA stated the action was the result of issues identified during its ongoing prudential supervision of AMP Super and matters that emerged during the 2018 Hayne royal commission.
“Areas identified for improvement include conflicts of interest management, governance and risk management practices, breach remediation processes, addressing poor risk culture and strengthening accountability mechanisms,” the prudential regulator said.
“The directions also require AMP Super to renew and strengthen its board.”
The regulator pointed out the new directions and conditions were designed to deliver enhanced member outcomes by requiring AMP Super to make significant changes to its business practices.
Additionally, APRA will require AMP Super to engage an external expert to report on remediation and compliance with the new directions and conditions.
In response to APRA’s action, AMP stated it would fully implement the directions and additional conditions.
“AMP will fully implement the directions and additional conditions. We have been working constructively with APRA on this matter and have already taken action on a number of the issues raised,” it stated.
It noted it has a new trustee operating model, expanded the board and reduced fees for superannuation fund members.
