The Australian Prudential Regulation Authority (APRA) has imposed additional licence conditions on H.E.S.T Australia Ltd (HESTA) to address concerns about its risk management and board governance during a recent transition of outsourced administration providers that led to severe, prolonged disruption to member services and direct harm to members. The administrative services transition to a new provider was finalised in June 2025. APRA identified deficiencies in HESTA’s board governance and risk management that left it inadequately prepared to oversee and manage the transition. Under the conditions, HESTA must conduct separate independent reviews of its risk management framework and board effectiveness, with comprehensive scope that includes its management of the transition.
Australian Prudential Regulation Authority 2025-12-11
Australian Prudential Regulation Authority imposes additional licence conditions on H.E.S.T Australia following member service disruption during administration provider transition
The Australian Prudential Regulation Authority (APRA) has imposed additional licence conditions on H.E.S.T Australia Ltd (HESTA) due to deficiencies in risk management and board governance during a transition to a new outsourced administration provider, causing significant disruption to member services. HESTA must conduct independent reviews of its risk management framework and board effectiveness, including its handling of the transition.