APRA Imposes Additional Licence Conditions on Diversa Trustees

​Australia’s prudential regulator has placed additional licence conditions on Diversa Trustees Limited following concerns over its investment governance practices.

The Australian Prudential Regulation Authority (APRA) said the measures are intended to address weaknesses in Diversa’s investment governance framework, including oversight of platform investment options offered to superannuation members. Diversa acts as trustee for 10 registrable superannuation entities, overseeing about 291,000 member accounts and more than AUD 15 billion in funds under management.

The decision follows a recent APRA thematic review of superannuation trustees that operate investment platforms. The review identified deficiencies at Diversa relating to the onboarding of new investment options, investment monitoring and reporting processes, and the management of conflicts of interest.

According to APRA, specific concerns included the lack of sufficiently rigorous and consistently applied investment selection criteria, gaps in operational due diligence for new investment options, and shortcomings in Diversa’s investment monitoring and reporting framework. The regulator said it requires assurance, supported by oversight from an independent expert, that Diversa’s governance arrangements are fit for purpose in both design and operation.

Under the additional licence conditions, which take effect on 23 December 2025, Diversa must appoint an independent expert to conduct separate reviews of its platform investment menus and overall investment governance framework. The company is also required to develop and implement an uplift plan to address identified gaps and provide APRA with assurance that remediation actions are complete and effective. In addition, Diversa must reassess certain investment options against enhanced governance requirements to determine their ongoing suitability.

Diversa is further restricted from onboarding new high-risk investment options unless it completes an enhanced due diligence process overseen by the independent expert, and an accountable person attests that the option is in members’ best financial interests.

Earlier this month, the Australian Securities and Investments Commission (ASIC) commenced civil penalty proceedings against Diversa.