HUB24 loans $78m to HTFS, beefs up ORFR reserves

HUB24 has advanced $77.5 million to HTFS Nominees, the trustee of its superannuation fund, to beef up Operational Risk Financial Requirement (ORFR) reserves following APRA's imposition of licence conditions.

The loan comes off the back of APRA hitting Equity Trustees' subsidiary HTFS, the trustee for the HUB24 Super Fund, with additional licence conditions May, concerned about weak, ill-defined and inconsistent investment option selection criteria.

HUB24 said the capital received by the trustee is reserved for the purpose of meeting the ORFR for the fund in accordance with APRA Prudential Standard SPS114 Operational Risk Financial Requirement. This is in addition to meeting enhanced operational risk obligations under CPS 230 Operational Risk Management.

"Funds drawn are reserved for ORFR purposes, and additional drawdowns may occur as needed to maintain or replenish the ORFR in compliance with these updated prudential standards," the company said.

The loan agreement was entered into on an arm's length basis at a fixed interest rate of 10% p.a.

HUB24 Group set up the loan facility that totalled $100 million in FY25 and $5 million was drawn during that period. As at 30 June 2026, $77.5 million was drawn and further tranches can be drawn down to the $100 million limit.

HUB24 is in the process of acquiring HTFS Nominees, which is still subject to regulatory approval.

"As HUB24 Super has grown significantly in scale, and the HUB24 Group has expanded its capabilities, we are now well positioned to bring the trustee function in-house," HUB24 chair Paul Rogan said in the latest 2026 financial year update.

"In anticipation of the transition, the board and management have commenced preparatory work to establish an Office of the Trustee and an Independent Trustee Board, supported by robust governance frameworks aligned to relevant APRA and ASIC standards.

"This important step will support the long-term financial interests of HUB24 Super members, and we will continue to work closely with EQT and regulators throughout FY27 to complete the transition, fulfil all regulatory obligations, maintain best practice governance standards, and ensure the effective establishment of the trustee board, governance processes and resources."

The group is also in the process of appointing an independent chair-elect for HTFS Nominees as a key part of the transition.

Elsewhere, HUB24 chief executive Andrew Alcock said the group delivered an "exceptional" performance for the year.

"In an environment of increasing complexity, evolving client expectations and growing demand for advice, our focus remains on addressing these challenges through solutions that improve productivity, increase choice and flexibility, and enable better client outcomes," he said.

Total revenue for FY26 rose to $501.1 million, up 23% annually, driven by the platform business and consistent revenue growth in Tech Solutions.

Statutory NPAT of $120.2 million jumped by 51%, while underlying NPAT of $137.3 million was up 40% year on year.

Total funds under administration grew to $164.3 billion, which was up 20% on the prior financial year.