KeyInvest saddled with additional conditions by APRA

Yasmine Raso

Senior Journalist, Financial Newswire

6 August 2025

The Australian Prudential Regulation Authority (APRA) has imposed additional licence conditions on and upped the capital requirement of financial services firm and friendly society known for its funeral bond product, KeyInvest.

The corporate authority said the additional conditions were the result of a review that identified “shortcomings” in KeyInvest’s risk management framework and raised concerns over the firm’s board’s ability to maintain “oversight” over its long-term objectives.

KeyInvest’s management fund is now faced with an additional $5.5 million capital requirement, which will remain in place until APRA is “satisfied its concerns have been addressed”. The additional licence conditions also included the development and implementation of a “remediation plan” to act on the review’s recommendations, and the development of an APRA-approved board renewal plan.

“It is the responsibility of boards to ensure that risk management frameworks are implemented and effective,” APRA Member, Suzanne Smith, said.

“The increased capital requirement reflects the heightened prudential risks and compliance concerns and should incentivise KeyInvest to complete remedial work.

“APRA protects policyholders by upholding a robust prudential framework and exercising active supervision, giving confidence to policyholders that their insurers can fulfil their obligations. APRA will continue to take suitable action if insurers fail to meet its expectations.”

APRA also confirmed that KeyInvest has accepted the review’s findings and has already worked towards addressing the recommendations.