APRA Adds Licence Conditions for Equity Trustees Superannuation After Governance Review

Australia’s prudential regulator has imposed additional licence conditions on Equity Trustees Superannuation Limited (ETSL) following concerns identified in a review of its investment governance arrangements.

The Australian Prudential Regulation Authority (APRA) said the measures are intended to address weaknesses in ETSL’s investment governance frameworks and practices, including oversight of platform investment options offered to members. ETSL acts as trustee for 11 registrable superannuation entities, overseeing around 649,000 member accounts with more than A$37 billion in funds under management.

The action follows APRA’s thematic review of superannuation trustees that operate investment platforms, which examined governance, strategic planning and member outcomes. According to the regulator, the review highlighted deficiencies in ETSL’s onboarding of new investment options, investment due diligence, monitoring and reporting processes, as well as the management of conflicts of interest.

APRA identified concerns around whether new investment options were assessed consistently and in members’ best financial interests, the depth of operational and investment due diligence undertaken, the identification of key risks, and the independence of analysis used in decision-making. The regulator also flagged gaps in monitoring and reporting frameworks for higher-risk investment options.

Under the additional licence conditions, effective from 18 December 2025, ETSL is required to appoint an independent expert to conduct separate reviews of its platform investment menus and its broader investment governance framework. The trustee must also develop and implement a remediation plan to address identified gaps and provide APRA with assurance that corrective actions have been completed and are effective.

In addition, ETSL must carry out a further review of its investment menu against enhanced governance requirements to assess the ongoing suitability of each option. Until these steps are completed, the trustee is restricted from onboarding certain new high-risk investment options unless an independent expert confirms the enhanced onboarding process has been followed and an accountable person attests that the option is in members’ best financial interests.