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Regulator acts against super fund HESTA after 'severe, prolonged disruption'
HESTA is one of Australia's largest super funds, with 1.1 million members. (ABC News)
Banking and superannuation regulator APRA has imposed additional licence conditions against one of Australia's largest funds HESTA, after a major disruption to services earlier this year.
APRA says the "severe, prolonged disruption" caused direct harm to some of HESTA's 1.1 million members.
HESTA will be required to conduct reviews into its risk management framework and board governance.
One of Australia's largest superannuation funds HESTA has been hit with regulatory action, after a "severe, prolonged disruption" that left 1.1 million Australians unable to access their funds for weeks.
The Australian Prudential Regulation Authority (APRA) has imposed additional licence conditions on HESTA, raising concerns about the fund's risk management and board governance during its transition from one outsourced administration provider to another earlier this year.
APRA pings HESTA over botched admin switch, service disruption
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The financial services regulator has pinged $100 billion superannuation fund HESTA with new licence conditions following its botched administration transfer this year that stripped basic functionality away from members.
The conditions imposed by the Australian Prudential Regulation Authority will require the fund, which manages money primarily for the healthcare industry, “to conduct separate independent reviews of its risk management framework and board effectiveness”.
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