KeyInvest saddled with additional conditions by | Australian Markets
The Australian Prudential Regulation Authority (APRA) has imposed additional licence conditions on and upped the capital requirement of financial providers firm and pleasant society identified for its funeral bond product, KeyInvest.
The company authority stated the additional conditions had been the outcome of a review that recognized “shortcomings” in KeyInvest’s risk management framework and raised issues over the firm’s board’s capability to keep up “oversight” over its long-term targets.
KeyInvest’s management fund is now confronted with an additional $5.5 million capital requirement, which can stay in place till APRA is “satisfied its concerns have been addressed”. The additional licence conditions additionally included the development and implementation of a “remediation plan” to behave on the review’s suggestions, and the development of an APRA-approved board renewal plan.
“It is the responsibility of boards to ensure that risk management frameworks are implemented and effective,” APRA Member, Suzanne Smith, stated.
“The elevated capital requirement displays the heightened prudential dangers and compliance issues and will incentivise KeyInvest to finish remedial work.
“APRA protects policyholders by upholding a robust prudential framework and exercising active supervision, giving confidence to policyholders that their insurers can fulfil their obligations. APRA will continue to take suitable action if insurers fail to meet its expectations.”
APRA additionally confirmed that KeyInvest has accepted the review’s findings and has already labored in direction of addressing the suggestions.
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