The Australian Prudential Regulation Authority (APRA) has imposed additional licence conditions on HTFS Nominees Pty Limited (HTFS) to address prudential concerns relating to its investment governance and member outcome frameworks and practices, including oversight of platform investment options made available to super fund members.
HTFS acts as trustee for HUB24 Super Fund which has approximately 165,000 member accounts and over $55 billion in funds under management.
The imposition of additional licence conditions follows APRA's thematic review of the investment governance, strategic planning and member outcomes practices of superannuation trustees that offer platforms ('Platform Trustees'). Broadly, the review identified deficiencies in HTFS's onboarding processes and practices for new investment options, investment option monitoring and reporting, management of conflicts of interest and approach to member outcomes.
Specifically, APRA's review of HTFS identified concerns in relation to:
- lack of sufficiently rigorous, well-defined and consistently applied investment option selection criteria;
- quality of operational and investment due diligence undertaken for new investment options, including insufficient consideration and management of conflicts of interest and poor documentation;
- design and operational effectiveness of investment option monitoring and reporting frameworks in identifying and responding to performance and risk concerns;
- management of potential conflicts of interest, particularly where key decision-makers hold senior leadership positions within the parent or group, and governance arrangements lack an independent trustee voice; and
- assessment and oversight of member outcomes, including the implementation of controls to minimise potential harm to previously advised members.
Under the additional licence conditions, effective 29 May 2026, HTFS is required to:
- appoint an independent expert to undertake separate reviews of its platform investment menus and frameworks governing investment governance, conflicts management, strategic objectives and member outcomes;
- develop and implement an uplift plan to address identified gaps, and provide APRA with assurance that remediation actions are complete and operating effectively to address those gaps; and
- undertake a further review of its investment menu against the enhanced investment governance requirements to determine ongoing suitability of each investment option.
HTFS must also refrain from onboarding certain new high-risk investment options to its platform until an independent expert confirms the option has gone through an adequate onboarding process and an accountable person attests that all reasonable steps were taken to ensure the option is in members' best financial interests.
APRA notes HUB24 Limited's ASX announcement dated 21 April 2026 that it has exercised its option to acquire HTFS from EQT Holdings, subject to regulatory approvals. The licence conditions will apply notwithstanding any change of ownership to HUB24 Limited, which may implement new investment governance and oversight practices for HTFS.
APRA Chair John Lonsdale said: "This is the fifth Platform Trustee that APRA has taken enforcement action against and reflects APRA's sustained focus on addressing prudential weaknesses identified through our review of Platform Trustees.
"Alongside enforcement action, APRA is closely supervising other in-scope Platform Trustees where improvement is necessary. APRA will continue to oversee the delivery of required actions and will hold trustees to account where they fail to make timely and sustainable improvements to investment governance and member outcomes.
"As part of this ongoing focus, we will also consider whether further enhancements to the relevant prudential standards and guidance are necessary."
