Equity Trustees will withdraw from the independent superannuation trusteeship market as part of a strategic repositioning aimed at focusing on its core corporate trustee and wealth services operations.
EQT Holdings Limited announced on 22 June that it intends to exit the business through its subsidiary, Equity Trustees Superannuation Limited (ETSL), following a strategic review that assessed market dynamics, operating requirements, growth opportunities and shareholder value.
The review also considered regulatory changes and client trends, including two major superannuation clients that are exploring options to internalise trusteeship.
The move reflects a broader industry response to APRA’s heightened expectations around trustee accountability and oversight of outsourced service providers.
Under APRA Prudential Standard CPS190, the board of ETSL will now consider options for the funds under its trusteeship and how best to deliver on members’ best financial interests. A further update on the future of the business is expected before EQT Holdings’ FY26 earnings announcement.
Managing director Mick O’Brien said the move would simplify the group’s operating model.
“This decision enables a more focused, simplified and lower risk operating model centred on our core businesses,” O’Brien said.
“We continue to see compelling long-term [opportunities] across our Corporate Trustee Services and Trustee and Wealth Services businesses, driven by favourable industry dynamics and the application of technology to enhance our service offering.”
O’Brien added that the independent super trustee model has been a “driver of growth and innovation across the industry over the past decade”.
“However, in the context of a shifting regulatory environment, higher operating costs and the evolving risk profile, EQT Holdings Limited concluded the business is better positioned to realise its full potential under alternative stewardship and it allows EQT Holdings Limited to prioritise investment in the areas of our business where we can drive the greatest shareholder value,” he said.
The super trustee services division contributed 5 per cent of group net profit before tax in the first half of FY26.
Based on first-half results, the business oversees $95 billion in funds under management, generates annualised revenue of $36 million and incurs around $22 million in direct expenses, alongside $11 million in allocated corporate overheads.
Should ETSL retire from its trustee appointments, EQT Holdings would be required to repay $36 million in Operational Risk Financial Requirements loan facilities used to capitalise the subsidiary. The group said it intends to manage any repayment through its broader capital management and liquidity planning processes.
Alongside the strategic announcement, Equity Trustees provided a trading update for FY26. The group said its core Corporate Trustee Services business continued to benefit from new business wins, while Trustee and Wealth Services remained well positioned across key segments.
The proposed exit will see the superannuation trustee services operation classified as a discontinued operation in the group’s FY26 financial statements.
Equity Trustees expects to record a one-off non-cash impairment charge of about $13 million related to goodwill and management rights.
Legal and advisory costs linked to the strategic review, regulatory notices and ETSL licence conditions are expected to total about $6.3 million for FY26, including $4.7 million in the second half.
A further $3.2 million in legal and advisory costs is expected for ASIC proceedings relating to the Shield and First Guardian Master Funds, with $2.2 million to be incurred in the second half after insurance support.
The board has not yet determined a final dividend for FY26 and said any decision would take into account the group’s capital position, liquidity, available profits and franking capacity, including the impact of the planned exit and litigation-related costs.
