HESTA Undergoes APRA Examination Regarding Significant Tech Replatforming Initiative
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HESTA’s Technology Shift Under APRA Oversight
Quick Overview
- HESTA’s technology shift encountered disturbances impacting 1 million members.
- APRA enforces extra licence requirements on HESTA.
- Mandatory independent assessments of risk management and board performance initiated.
- HESTA’s CEO promises to address issues and enhance member services.
HESTA’s Significant Technology Replatforming Initiative
Earlier this year, HESTA initiated a substantial technology shift, characterized as one of the largest and most thorough projects of its type by an Australian industry super fund. This significant replatforming took the super fund offline from early April until early June, disrupting account access and transaction processes for around 1 million members.
Access Problems for Members
Although the transition concluded in early June, some members still encountered access difficulties for up to a month. Extended wait times at contact centres compounded the issue, delaying solutions and frustrating members.
Response from APRA
The Australian Prudential Regulation Authority (APRA) has raised concerns regarding the project’s management, leading to additional licence stipulations for HESTA. APRA Deputy Chair Margaret Cole highlighted the importance of effectively managed transitions that do not hinder members’ access to their accounts.
Commitments from HESTA
HESTA CEO Debby Blakey recognized the regulator’s worries and expressed apologies to members for the experienced disruptions. Blakey reaffirmed that the transition aimed to enhance service in the long run and that HESTA is dedicated to implementing enhancements to better support its members.
Conclusion
HESTA’s ambitious technology transition initiative has attracted scrutiny from APRA due to extended disruptions in member services. The super fund is now under extra licence conditions and is required to undergo independent reviews to evaluate its risk management and board efficacy. HESTA assures that measures are being adopted to improve service delivery for its members.
Q&A
Q: What initiated APRA’s examination of HESTA?
A: APRA’s examination was prompted by the significant and prolonged disruption in member services during HESTA’s technology transition, affecting access and transaction processing for a large number of members.
Q: What extra conditions has APRA placed on HESTA?
A: APRA has mandated that HESTA conduct independent evaluations of its risk management framework and board effectiveness.
Q: How has HESTA reacted to APRA’s conditions?
A: HESTA has conveyed its dedication to addressing the issues raised by APRA, fully cooperating with the regulator, and applying any necessary improvements to enhance member services.
Q: What was the extent of HESTA’s technology initiative?
A: The initiative was a significant replatforming endeavor, regarded as one of the largest and most comprehensive technology projects undertaken by an Australian industry super fund.
Q: How long did the disruptions persist?
A: The primary transition phase lasted from early April to early June, but some members faced access challenges for up to a month after that.
Q: What are the long-range objectives of HESTA’s replatforming initiative?
A: HESTA aims to provide a superior, more tailored service to its members, ensuring enhanced account access and transaction capabilities.
