The Australian Prudential Regulation Authority (APRA) has imposed additional licence conditions on Diversa Trustees Limited (Diversa) to address prudential concerns relating to its investment governance frameworks and practices, including oversight of platform investment options made available to members.
Diversa acts as trustee for 10 registrable superannuation entities and has approximately 291,000 member accounts and over $15 billion in funds under management.
The additional licence conditions follow APRA's recent 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 Diversa's onboarding processes and practices, investment option monitoring and reporting, and management of conflicts of interest.
Specifically, APRA's review of Diversa identified concerns regarding the:
- onboarding of new investment options, including the lack of sufficiently rigorous, well-defined and consistently applied investment selection criteria;
- adequacy of operational due diligence undertaken in relation to new investment options; and
- adequacy of Diversa's investment monitoring and reporting framework.
APRA requires assurance, with appropriate oversight by an independent expert, that Diversa's investment governance framework and practices are fit for purpose in their design and operation.
Under the additional licence conditions, effective 23 December 2025, Diversa is required to:
- appoint an independent expert to undertake separate reviews of its platforms' investment menus and investment governance framework;
- develop and implement an uplift plan to address identified gaps, and provide APRA with assurance or attestation that the remediation actions are complete and effective; and
- undertake a further review of its investment menus against the enhanced investment governance requirements to determine ongoing suitability of certain investment options.
Diversa must also refrain from onboarding new high-risk investment options to its platform without first following an enhanced due diligence process, with oversight by the independent expert, and having an accountable person attest that the onboarding of the investment option is in members' best financial interests.
These actions build on APRA's public letter of 7 October 2025, which indicated that APRA would escalate supervisory intensity as necessary to ensure that appropriate steps are being taken by Platform Trustees to lift investment governance and member outcomes practices.
Deputy Chair Margaret Cole said: "APRA has made clear our expectations around effective investment governance frameworks and practices, including in relation to onboarding and monitoring of investment options, to ensure they are in members' best financial interests. Trustees play an important role curating the investment options made available to members and their decisions should be underpinned by robust governance."
APRA will continue to coordinate closely with ASIC on the regulatory response to weaknesses identified with Platform Trustees.
