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APRA Imposes Extra Licence Conditions on HESTA After Prolonged Service Disruption

APRA concluded HESTA was not properly prepared for a seven-week migration outage.

Overview

  • APRA found deficiencies in HESTA’s board governance and risk management during its transition to the outsourced GROW administration platform.
  • Under the added licence conditions, HESTA must commission independent reviews of its risk management framework and the effectiveness of its board.
  • The transition resulted in a severe, prolonged disruption that left about 1.1 million members unable to access key services, with delays continuing for some after restoration.
  • HESTA chief executive Debby Blakey apologized to members and said the fund is cooperating fully with the regulator and working with its provider to improve service.
  • Super Consumers Australia welcomed the enforcement action and urged the government to introduce mandatory customer service standards for super funds.