APRA has issued directions and imposed new licence conditions on NULIS Nominees to improve its governance and controls to ensure members' best interests.
The directions and additional licence conditions require NULIS to record how it considers members' best interests and priority covenants when making decisions that materially affect members.
APRA said this measure would improve NULIS' practices and ensure APRA is able to better assess whether members' best interests are being sufficiently considered by NULIS.
Further, the new directions and conditions will address prudential concerns APRA identified in its supervision of NULIS, corroborated in an independent report by Deloitte.
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NULIS will be required to undertake timely remediation by implementing improvements in its governance and control environment and appointing an independent expert to report on compliance with its licence conditions.
APRA said NULIS had agreed to these provisions.
The new directions and licence conditions follow an investigation into matters at NULIS uncovered by the Royal Commission.
The Royal Commission formed the view that NULIS' decisions in regards to moving certain groups of members into MySuper products, grandfathering certain fee arrangements and the charging of fees to members for services that were not provided may not have been in members' best interests.
APRA did not conclude that NULIS breached the Superannuation Industry Act 1993 but the regulator said its investigation did raise serious questions about the adequacy of NULIS' internal processes for ensuring that members' best interests were prioritised.