Colonial First State Investments has confirmed that additional conditions have been imposed on its superannuation licence by the Australian Prudential Regulatory Authority (Apra).
The action was taken “to ensure members’ best interests are prioritised in its decision-making”, the watchdog said.
It follows an “investigation into matters referred to it by the financial services Royal Commission in February 2019”.
The grandfathering of certain fee arrangements by Colonial First State was one of 12 cases referred to Apra by commissioner Kenneth Hayne last year.
The company, which is part of Commonwealth Bank of Australia, was hit with a civil penalty claim by the Australian Securities and Investments Commission (Asic) in March.
The regulator accused Colonial First State of providing misleading or deceptive communication to super fund members.
No argument
Colonial First Statement Investments said it “takes its obligation to act in the best interests of its superannuation fund managers seriously and agrees with the purpose of the licence conditions”.
“The additional conditions require [the firm] to document the way in which it has considered its obligations under the members’ best interests and members’ priority covenants, and maintain a record of all relevant documents.”
The company said it “will continue to work openly and constructively with Apra”.
Action already taken
Colonial First State said it had “continued to improve its business” over the past 12 months.
The action taken included lowering and simplifying its fees, which has resulted in lower charges for over 770,000 members.
It has also enhanced reporting to members and launched an app to improve member engagement and experience.
