On 5 August 2025, the Australian Prudential Regulation Authority (APRA) issued a media release announcing that it had placed an additional $5.5 million capital requirement and imposed additional licence conditions on the life insurance company and friendly society, KeyInvest Limited (KeyInvest).
Review
These measures have been imposed following APRA’s review of KeyInvest which identified shortcomings in its risk management framework and raised questions about the board’s oversight of the insurer’s long-term objectives.
The additional 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. The additional licence conditions include the requirement to design and implement a remediation plan addressing the review’s recommendations and to develop an APRA approved board renewal plan.
APRA’s actions in relation to KeyInvest serve as a timely reminder to APRA-regulated entities that APRA is continuing to focus on adequacy of risk management and board oversight, as well as highlighting APRA’s increased appetite to use its powers, including through the imposition of licence conditions and application of additional capital requirements.