The Australian Prudential Regulation Authority (APRA) has imposed additional licence conditions on Australian Ethical Superannuation Pty Ltd (AES), trustee of the Australian Ethical Retail Superannuation Fund, to address concerns about its expenditure management. APRA’s review of AES’s related-party expenditure practices identified deficiencies in the robustness of its approach, particularly for investment management agreements with its parent, Australian Ethical Investments. APRA found AES had not demonstrated adequate processes to scrutinise and justify that fees paid to its parent are consistent with members’ best financial interests. Under the conditions, AES must appoint an independent third party to review these outsourcing decisions, recommend improvements to strengthen compliance with key regulatory duties, and implement any recommendations.
Australian Prudential Regulation Authority 2025-11-27
Australian Prudential Regulation Authority imposes additional licence conditions on Australian Ethical Superannuation to tighten oversight of related-party expenditure
The Australian Prudential Regulation Authority (APRA) has imposed additional licence conditions on Australian Ethical Superannuation Pty Ltd (AES) due to concerns over its expenditure management. APRA found deficiencies in AES's related-party expenditure practices, especially in investment management agreements with its parent, Australian Ethical Investments. AES must appoint an independent third party to review these outsourcing decisions, recommend improvements, and implement any recommendations to ensure regulatory compliance.