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 a severe, prolonged disruption to member services and caused direct harm to members. HESTA, which has 1.1 million members and around AUD 100 billion in funds under management, finalised the move of administrative services to a new provider in June 2025. APRA identified deficiencies in board governance and risk management that left HESTA inadequately prepared to oversee and manage the transition, and has required separate independent reviews of HESTA’s risk management framework and board effectiveness, with the reviews to be comprehensive in scope and to consider HESTA’s management of the transition.
Australian Prudential Regulation Authority 2025-12-11
Australian Prudential Regulation Authority imposes licence conditions on HESTA after administration provider transition disrupted member services
The Australian Prudential Regulation Authority has imposed additional licence conditions on H.E.S.T Australia Ltd to address deficiencies in risk management and board governance during a transition of outsourced administration providers, which disrupted member services. APRA requires independent reviews of HESTA’s risk management framework and board effectiveness.