The Australian Prudential Regulation Authority (APRA) has recently increased its oversight of KeyInvest, a financial services firm renowned for its funeral bond product, by imposing additional licence conditions and raising the capital requirement.
This decision follows an APRA review identifying deficiencies in KeyInvest’s risk management framework and questioning the board's effectiveness in maintaining strategic oversight.
KeyInvest must now meet a new capital requirement of $5.5 million, which will remain until APRA confirms that its concerns have been adequately addressed. Furthermore, the firm is required to develop and implement a remediation plan based on the review's recommendations and establish a board renewal plan approved by APRA.
APRA's Member, Suzanne Smith, emphasised the importance of robust risk management frameworks and urged KeyInvest to prioritise compliance and prudential risk mitigation. Smith stated that the increased capital requirement serves to encourage and expedite the completion of necessary remedial work. Moreover, she reiterated APRA's commitment to protecting policyholders by maintaining a strong prudential framework and actively supervising insurers to ensure their obligations are met.
KeyInvest has acknowledged the review findings and has already begun efforts to act on the recommendations presented by APRA.
The imposition of these conditions on KeyInvest highlights APRA’s rigorous stance on ensuring financial institutions are accountable for their risk management practices. For consumers, this action provides assurance that financial firms are being monitored and held to high standards, thus safeguarding their investments and policy benefits. Businesses in the financial sector are reminded of the critical importance of a sound risk management strategy and the potential repercussions of failing to meet regulatory expectations.
KeyInvest’s progress in meeting APRA’s requirements will be closely watched by the industry. Successful implementation of the required remediation plan could restore confidence in the firm’s governance and risk oversight capabilities. It remains essential for KeyInvest to demonstrate substantial improvements to satisfy APRA's conditions promptly. This situation also serves as a broader warning to other financial institutions to ensure they adhere strictly to prudential regulations to avoid similar scrutiny.
Published:Thursday, 7th Aug 2025 Source: Paige Estritori
Australia's housing market is grappling with stark increases in land costs, which are driving home prices to unprecedented heights. Recent data from the Australian Bureau of Statistics indicates that residential land values surged by 8.8% between 2023 and 2024, reaching a staggering $7.7 trillion. Over the past 35 years, these values have ballooned from 1.1 to 2.9 times the nation's GDP. - read more
The Australian Prudential Regulation Authority (APRA) has recently increased its oversight of KeyInvest, a financial services firm renowned for its funeral bond product, by imposing additional licence conditions and raising the capital requirement. This decision follows an APRA review identifying deficiencies in KeyInvest’s risk management framework and questioning the board's effectiveness in maintaining strategic oversight. - read more
As property prices continue to soar across Australia, first-time homebuyers are facing an increasingly challenging market. High-end properties exhibit greater volatility, responding sharply to interest rate changes, as illustrated by CBA data comparing the price fluctuations of the most costly and least expensive homes. Recent interest rate cuts by the Reserve Bank of Australia (RBA) have fueled a rise in property prices, yet costlier homes have not seen as much growth as more affordable ones. - read more
Global financial markets displayed varied performances overnight, with Wall Street experiencing a minor rebound that failed to recover from Friday night's losses. The US dollar remained under pressure, gaining some ground only against the Swiss Franc, as the Federal Reserve's potential early rate cut looms larger. Concurrently, US Treasury yields continued their downward trajectory across all maturities, whereas the Australian dollar held steady just below 65 cents. - read more
Australia is gearing up for a shift in the real estate landscape, with industry insiders identifying an emerging seller's market. Sydney's real estate agent and auctioneer, Tom Panos, highlighted this trend after observing a string of exceptionally strong auction results. - read more
Many older Australians are increasingly struggling to understand the reverse mortgage market, according to recent research and inquiry records from the national brokerage, Seniors First. This complexity is evidenced by a threefold rise in inquiries from Australians over 60 during the past two years, largely driven by concerns over living costs, misconceptions about the products, and inadequate access to information. - read more
Navigating the financial path to securing a dream can be a thrilling journey. For many, the aspiration to own a boat and sail the picturesque waters of Australia is a dream intensely pursued. Yet, the wake of excitement is often trailed by the complexity of financial planning. - read more
Owning a boat is a dream for many Australians. The idea of spending serene weekends on the water or embarking on exciting fishing trips is undeniably appealing. However, turning this dream into reality often requires financial support in the form of a boat loan. Understanding the intricacies of financing your boat is a critical first step on this journey. - read more
If you're in the market for buying a boat, then it's crucial to familiarize yourself with preapproved boat finance. Unlike typical boat loans where you apply for financing after you've decided on a boat, preapproval allows you to secure finance before you start shopping. This gives you peace of mind and greater control over the buying process, ensuring no surprises or delays arise along the way. - read more
When it comes to purchasing a boat, most individuals require some form of financing. To secure the best possible loan terms and increase the chances of approval, it is essential to build a strong boat financing application. This article will provide tips and tricks specifically tailored for Australians on how to create a compelling application that stands out to lenders. - read more
Boating offers a unique escape and a chance to explore Australia's stunning waterways. For many, owning a boat is a dream come true, providing endless adventures and cherished memories with family and friends. - read more
From the bustling harbors of Sydney to the serene waters of the Great Barrier Reef, boating is a treasured Australian pastime that combines the love of the ocean with the spirit of adventure. With so many Australians drawn to the water, understanding the financial aspects of boat ownership is crucial, particularly when it comes to securing a boat loan. However, wading through boat loan rates and terms can feel as complex as navigating through choppy seas. - read more
Knowledgebase
Prepayment Penalty: A fee charged by a lender if a borrower pays off their loan early.
