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HESTA is one of Australia's largest super funds, with 1.1 million members. (ABC News)

Link copiedShareShare articleHESTA chief executive Debby Blakey will step down later this year after more than a decade in the role at Australia's 10th-biggest superannuation fund.

The announcement comes after the fund underwent an outage, originally planned to last seven weeks, as it changed from administration provider MUFG to Grow Inc.

APRA says the fallout of HESTA's planned outage led to a "severe, prolonged disruption" that caused direct harm to some members.

The outage quickly blew out by weeks, in some cases months, leaving many of its members unable to access funds for surgery, home deposits or nursing home fees.

It also left members waiting on the phone for hours.

Ongoing reporting by the ABC and questioning by Senator Jane Hume led to Australian Prudential Regulation Authority (APRA) taking action in December, raising concerns about the fund's risk management and board governance during its transition period between administration providers.

"While some disruption is unavoidable when changing service providers, APRA expects that any transitions are well managed and do not result in any unnecessary impact on members' ability to access their accounts," APRA deputy chair Margaret Cole said.

HESTA has more than 1 million members, predominantly in the health sector, and holds assets of more than $100 billion.

Debby Blakey will step down in the second half of the year. (Supplied: HESTA)

Ms Blakey said that after 11 years in the role and 17 years at the fund, it felt like the right time to shift her focus to a board position, having led the organisation through a period of significant transformation.

A consumer advocacy group has called for transparency around why the seven-week HESTA super fund outage was approved.

"Leading HESTA and serving our members as CEO for more than a decade has been an incredible honour and the greatest privilege of my career," Ms Blakey said.

"I want to thank the board and my colleagues for their terrific support through such an impactful period for the fund and the industry.

"I am firmly focused on delivering a seamless leadership transition to support the delivery of great long-term outcomes for HESTA members."

Superannuation's peak body, Association of Superannuation Funds of Australia (ASFA) chief executive Mary Delahunty said Ms Blakey had made a positive impact on the industry.

"Debby has strengthened the superannuation sector significantly through her leadership at HESTA, her service on ASFA's Board and the various other roles she has played," she said. 

"She has been a steadfast advocate for equity in superannuation and in all areas that she has touched in her role, bringing gender and broader diversity conversations to the investment process with data and evidence.

"She has defined for Australia what it means to be an investor with impact.

"Debby has completely transformed the way institutional investors influenced corporate boardrooms, evidenced by her leadership of the sector's response to the destruction of the Juukan Gorge historical site by Rio Tinto. 

"Whatever she decides to do next, I'm sure she'll keep doing what she's always done – lead with skill, strategy and a clear sense of purpose."

The HESTA board is undertaking a search for Ms Blakey's replacement and expects to announce the new chief executive by July.

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