APRA Launches Probe Into Diversa Trustees Over Executive Pay Practices

The Australian Prudential Regulation Authority (APRA) has initiated an investigation into the executive remuneration decision-making and processes at Diversa Trustees Limited. The probe will assess whether Diversa has complied with its regulatory obligations, specifically examining if pay decisions align with APRA's prudential standards and trustee duties under the Superannuation Industry (Supervision) Act.

APRA clarified that the investigation will not address Diversa's potential responsibility for member losses linked to the collapse of First Guardian, a matter currently under separate proceedings by ASIC in the Federal Court. APRA Chair John Lonsdale stated, "Prudent remuneration practices play a critical role in driving sound governance and protecting the best financial interests of superannuation fund members. APRA expects superannuation trustees to ensure remuneration decisions reinforce accountability and appropriately reflect risk and performance outcomes, particularly in circumstances where member outcomes may have been adversely affected."

This action follows APRA's imposition of additional license conditions on Diversa in December 2025, which aimed to address prudential concerns regarding its investment governance frameworks and oversight of member investment options.