The prudential regulator has imposed additional licence conditions on Diversa Trustees over concerns it is failing to meet regulatory and compliance obligations.
The new conditions are designed to address concerns about:
- The adequacy of Diversa’s resources to manage risks and meet regulatory and compliance obligations;
- Heightened inherent business risks that are driven by the complex structure and operations of Diversa; and
- The ability of Diversa to deliver quality member outcomes, including high fees and poor investment performance.
The additional licence conditions also seek to codify recommendations of a third party review of Diversa’s operating model. This includes governance, risk management, 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.
Diversa has approximately 320,000 members and more than $11 billion in funds under management.