HTFS Nominees, the trustee for the HUB24 Super Fund, will have to comply with new licence conditions following an APRA review.
Under the new conditions, HTFS is required to:
- Appoint an independent expert to review investment governance, conflicts management, strategic objectives and member outcomes
- Develop an “uplift plan” for any issues identified during the above process
- Assess the suitability of each option on its investment menu
- Refrain from onboarding new high-risk investment options until an independent expert verifies (and accountable person confirms) that members’ best financial interests were taken into consideration
APRA imposed these conditions to address concerns related to investment selection criteria, investment performance monitoring and member outcomes. The regulator also identified potential conflicts of interest; some “key decision-makers” held senior leadership positions within the trustee’s parent company.
HTFS is currently a subsidiary of Equity Trustees, although HUB24 has shared its intention HUB24 to take the trustee function in-house by the end of 2026.
Back in April, HUB24 said it had completed due diligence on the acquisition and that the group “will collaborate with [Equity Trustees] throughout the transition period to fulfil ongoing regulatory obligations and adhere to best practice governance principles”.
Per APRA’s statement, the new licence conditions will apply regardless of any change of ownership.
APRA chair John Lonsdale said that the HTFS review was part of APRA’s broader review of platform trustees, and that HTFS is the fifth platform trustee the regulator has taken action against.
He added: “Alongside enforcement action, APRA is closely supervising other in-scope platform trustees where improvement is necessary.
“APRA will continue to oversee the delivery of required actions and will hold trustees to account where they fail to make timely and sustainable improvements to investment governance and member outcomes.”
Don’t you think APRA should have been running a review like this before First Guardian and Shield happened? Superfunds have had these obligations for a long time!