The Australian Prudential Regulation Authority (APRA) confirms that OnePath Custodians Pty Limited (OPC) has fulfilled all obligations under its Court Enforceable Undertaking (CEU) and concluded the undertaking.
OPC is one of four superannuation trustees in the Insignia Financial Group and has approximately 365,000 members and over $39 billion in funds under management.
APRA accepted the CEU in July 2024 after OPC pledged to rectify compliance deficiencies and compensate affected members for failing to direct default member contributions to a MySuper product. OPC has since undertaken a comprehensive program to identify affected members, rectify the deficiencies and has made all reasonable endeavours to provide remediation where required.
As part of the CEU, OPC also committed to hold $40 million as an overlay of existing Operational Risk Financial Requirement assets. APRA has today lifted this overlay.
APRA Chair John Lonsdale said the conclusion of the CEU reflected OPC's work to address concerns and demonstrated APRA's balanced approach to supervision: holding entities to account, while acknowledging genuine remediation and uplift.
"Superannuation trustees play a critical role in protecting Australians' retirement savings. Where trustees fall short, the consequences can directly affect members. APRA expects issues to be rectified swiftly and thoroughly.
"As one of Australia's largest retail superannuation groups, Insignia is expected to lead with strong governance, risk oversight and robust controls evidencing a clear focus on members' best interests," Mr Lonsdale said.
APRA's list of enforceable undertakings has been updated.
