The Australian Prudential Regulation Authority (APRA) has imposed additional licence conditions on Equity Trustees Superannuation Limited (ETSL) to address prudential concerns relating to its investment governance frameworks and practices, including oversight of platform investment options made available to members.
ETSL acts as trustee for 11 registrable superannuation entities (RSEs) and has approximately 649,000 member accounts and over $37 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 ETSL's onboarding processes and practices, including adequacy of investment selection criteria and due diligence, as well as investment option monitoring and reporting frameworks, and management of conflicts of interest.
Specifically, APRA's review of ETSL identified concerns regarding:
- onboarding of new investment options to ensure they are assessed consistently, are in the best financial interests of members, and appropriately manage conflicts of interest;
- adequate knowledge, operational and investment due diligence undertaken in relation to new investment options;
- identifying key risks, and ensuring independent analysis of information received from investment managers and external research and rating agencies; and
- the adequacy of investment monitoring and reporting to identify and manage higher risk investment options.
Under the additional licence conditions, effective 18 December 2025, ETSL 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 menu against the enhanced investment governance requirements to determine ongoing suitability of each investment option.
ETSL must also refrain from onboarding certain new high-risk investment options to its platform until an independent expert confirms the option has gone through the uplifted onboarding process and an accountable person attests that all reasonable steps were taken to ensure the 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 reiterates robust investment governance, including in relation to onboarding and monitoring of platform investment options, is critical to safeguard the interests of members. The accountabilities of trustees are the same irrespective of their business model and cannot be outsourced."
APRA will continue to coordinate closely with ASIC on the regulatory response to weaknesses identified in Platform Trustees.
