The Australian Prudential Regulation Authority (APRA) has applied an additional AUD 5.5 million capital requirement and imposed additional licence conditions on KeyInvest Limited, following a review of the life insurer and friendly society’s risk management framework. An independent review commissioned at APRA’s request identified shortcomings in KeyInvest’s risk management framework and raised questions about the board’s oversight of the insurer’s long-term objectives. APRA has therefore applied the AUD 5.5 million requirement to KeyInvest’s management fund as an operational risk capital add-on, to remain in place until APRA is satisfied the concerns have been addressed. The added licence conditions require KeyInvest to design and implement a remediation plan addressing the review’s recommendations and to develop a board renewal plan subject to APRA approval.
Australian Prudential Regulation Authority 2025-08-05
Australian Prudential Regulation Authority imposes AUD 5.5 million capital add-on and new licence conditions on KeyInvest after risk management review
The Australian Prudential Regulation Authority has imposed an additional AUD 5.5 million capital requirement and new licence conditions on KeyInvest Limited due to deficiencies in its risk management framework and board oversight, as identified by an independent review. KeyInvest must implement a remediation plan and develop a board renewal plan, both subject to APRA approval.