APRA investigating Diversa's executive compensation

APRA has commenced an investigation into if Diversa's executive remuneration decisions were made in accordance with prudential standards and trustees' duties under the Superannuation Industry (Supervision) Act.

"Prudent remuneration practices play a critical role in driving sound governance and protecting the best financial interests of superannuation fund members," APRA chair John Lonsdale said.

"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."

APRA said the investigation will not consider whether Diversa is responsible for member losses arising from the collapse of First Guardian, which is currently the subject of ASIC's proceedings in the Federal Court.

ASIC has put forth several allegations, starting with Diversa failing to conduct adequate due diligence before allowing its members to invest and failing to conduct adequate ongoing monitoring.

Members of the Powerwrap Fund, Praemium Fund, and MAP Master Superannuation Plan together with its sub-plans, YourChoice Super and AusPrac, were exposed to First Guardian between 2020 to 2024.

This week Diversa dragged Praemium and its subsidiaries into the legal proceedings, providing a notices of a cross-claim relating to ASIC's proceedings for its involvement in First Guardian.

Praemium said it will "will review the claim and take advice and update the market in due course."

Diversa Trustees has said it will be "vigorously defending" ASIC's allegations, arguing the managed investment scheme was "fraudulent."

APRA had also imposed additional licence conditions on Diversa in late 2025.

The prudential regulator said it has concerns relating to Diversa's investment governance frameworks and practices, including oversight of platform investment options made available to members.

Diversa acts as trustee for 10 registrable superannuation entities and has approximately 291,000 member accounts and over $15 billion in funds under management.

Equity Trustees recently decided to exit from its super trusteeship business via its subsidiary Equity Trustees Superannuation Limited (ETSL), after facing continued scrutiny over the Shield and First Guardian collapses.