June 13, 2019
SYDNEY (Reuters) – Australia’s banking watchdog on Friday said it had issued directions and license conditions on AMP Ltd’s pension fund units to force it to comply with regulations governing the superannuation industry.
The Australian Prudential Regulation Authority (APRA) said the conditions apply to AMP Superannuation Limited and N.M. Superannuation Proprietary Limited, collectively known as AMP Super.
“The new directions and conditions are designed to deliver enhanced member outcomes by requiring AMP Super to make significant changes to its business practices,” APRA said in a statement.
Problems identified included conflicts of interest, management, governance and risk management practices, breach remediation processes, addressing poor risk culture and strengthening accountability mechanisms.
The directions also require AMP Super to renew and strengthen its board, and to engage an external expert to report on remediation and compliance.
(Reporting by Wayne Cole; editing by Grant McCool)