APRA places extra $5.5m capital requirement on KeyInvest
Make us a preferred source
Make us a preferred source on Google
The news: The Australian Prudential Regulation Authority (APRA) has placed an additional $5.5 million capital requirement and imposed additional licence conditions on life insurer and friendly society KeyInvest, following a review of its risk management framework.
The context: APRA said an independent review identified shortcomings in KeyInvest’s risk management framework and raised questions about the board’s oversight of the insurer’s long-term objectives.
As a result, an additional $5.5 million capital requirement has been applied to the management fund of KeyInvest as an operational risk capital add-on. This will remain in place until APRA is satisfied its concerns have been addressed.
Additional licence conditions have also been imposed, including the requirement to design and implement a remediation plan addressing the review’s recommendations and to develop an APRA approved board renewal plan.
KeyInvest has accepted the findings and started taking steps to address the recommendations.
What they said: APRA member Suzanne Smith commented: “It is the responsibility of boards to ensure that risk management frameworks are implemented and effective”.
“The increased capital requirement reflects the heightened prudential risks and compliance concerns and should incentivise KeyInvest to complete remedial work.”
The source: APRA media release
