APRA imposes additional conditions on Fiducian super licence

Fiducian Portfolio Services has had additional licence conditions imposed on it by the Australian Prudential Regulation Authority (APRA) over data concerns.

APRA said the licence conditions were aimed addressing data-related concerns ahead of this year’s superannuation performance test.

Fiducian Potfolio Services Limited is the trustee for the Fiducian Superannuation Service which has 8,770 members and $2.57 billion in assets under management.

APRA said the action comes after issues were identified with the accuracy and completeness of data submitted previously, which raised concerns about FPSL’s ability to identify, assess, monitor, and submit accurate data.

Under the terms of the new licence conditions, which came into force from 15 July 2024, FPSL must:

• take reasonable steps to ensure that an expert completes a review of the accuracy and completeness of data submitted ahead of the 2024 performance test;
• develop and implement a remediation plan, to be approved by APRA, to address any recommendations or areas of concern identified by the expert; and
• provide APRA with an attestation regarding the accuracy of data and governance processes for data submissions.

Commenting on the move, APRA Deputy Chair Margaret Cole said: “APRA places a high degree of reliance on the quality and accuracy of the data we receive to drive greater transparency of the industry and strengthen the accountability of trustees to act in the best financial interests of their members. This includes the data submitted for the annual performance test, a powerful tool used by APRA to hold trustees to account for fund performance, fees and costs.

“All trustees must have the necessary systems and controls in place to provide accurate date to APRA,” Cole said.

Fiducian later issued a statement in which it acknowledged the issues raised by APRA and said the issue arose due to errors in submitting product and performance related data to APRA in the APRA forms. Upon becoming aware of the errors, Fiducian re-submitted the data to APRA.

“Fiducian confirms that it has always endeavoured to comply with APRA requirements and to ensure that its processes are robust, it engaged a big-4 audit & consulting firm in May 2024 to review its end-to-end data reporting processes. The finalised report from this engagement is expected in coming days. Fiducian is fully committed to meet any recommendations in that report.”