APRA imposes additional license conditions on Diversa
Diversa Trustees has been subjected to additional license conditions by the Australian Prudential Regulation Authority (APRA).
The regulator announced today that the additional license conditions had been imposed to address concerns around:
- The he adequacy of Diversa’s resources to manage risks and meet regulatory and compliance obligations;
- heightened inherent business risks driven by the complex structure and operations of Diversa; and
- concerns regarding the ability of Diversa to deliver quality member outcomes, including in relation to high fees and poor investment performance.
It said the additional licence conditions also seek to codify recommendations of a third party review of Diversa’s operating model, which included matters relating to governance, risk management, and outsourcing and oversight.
Under the terms of the new licence conditions, which came into force on 23 January, Diversa is required to:
- enhance its governance and risk frameworks, with a particular focus on third party service providers;
- improve member outcomes through the development and implementation of a plan to address persistently high fees; and
- conduct an independent review to ensure that APRA’s concerns have been adequately addressed.
APRA’s concerns are not relevant. Diversa is not even able to record bank deposits of contributions correctly. Their staff need to get their bank accounts to reconcile. We have employees whose employer contributions they are unable to roll over.