The Australian Prudential Regulation Authority (APRA) has accepted a court enforceable undertaking (CEU) from AMP Superannuation Limited and NM Superannuation Property Limited, collectively called AMP Super, vowing to rectify their governance and risk management deficiencies.
AMP Super, a part of the AMP group of companies (AMP Group), controls two superannuation funds with estimated assets of $116 billion.
APRA's acceptance of the CEU follows a lengthy investigation into AMP Super's past conduct that was believed to have resulted in a myriad of potential breaches of the Superannuation Industry (Supervision) Act 1993.
After accepting the CEU, APRA has recognised AMP Super's improvements. However, it warned that the improvements must be further embedded and operationalised.
“AMP is one of the wealth industry's largest and best-resourced companies, and APRA expects a commensurately high standard of governance and risk management,” APRA Member Margaret Cole.
“While we acknowledge the efforts AMP Super has made towards improving its internal systems, the issues addressed by the CEU show there is further work to do. By offering this CEU, AMP Super has committed to [fixing] promptly remaining legacy issues that have existed within its superannuation business and ensure affected members are appropriately remediated.”
AMP Super has acknowledged APRA's concerns, and under the terms of the CEU, the super fund vowed to:
Aside from AMP Super, Australian insurers must implement major changes due to several reforms to improve consumer outcomes. The regulatory changes that commenced in October include: