Slater and Gordon today filed a class action against AMP on behalf of over 2 million Australians.
The class action is the second to be filed by Slater and Gordon as part of its Get Your Super Back campaign that kicked off following the royal commission.
The first class action launched by Slater and Gordon as part of their Get Your Super Back campaign was against Colonial First State.
The case alleges that through arrangements with related parties, trustees AMP Super and NM Super paid too much to related AMP entities for administration services.
The case also alleges that they failed to secure an appropriate return on cash-only investment options.
Slater and Gordon senior associate Nathan Rapoport said super members trusted that AMP would act in their best interests but instead were charged exorbitant fees.
“Both AMP Super and NM Super, as trustees of the funds, should have taken steps to secure the best deal for members on a commercial arms-length basis,” said Mr Rapoport.
Mr Rapoport said that the royal commission heard evidence of a group of AMP cash option members who received negative returns due to uncompetitive interest rates and excessive fees and not even the trustee was aware of it.
“These customers would have been better off keeping their retirement savings under their bed,” Mr Rapoport said.
An AMP spokesperson said that the group acknowledged the class action proceeds and would vigorously defend the proceedings.
“The action relates to fees charged to members, and the low interest rate received and fees charged on cash-only fund options. The proceedings will be vigorously defended.
“AMP and the trustees of its superannuation funds are firmly committed to acting in the best interests of their superannuation members and acting in accordance with legal and regulatory obligations. We encourage any customers who have concerns to contact AMP directly or their financial adviser,” an AMP spokesperson said.
This is the latest class action to hit AMP after Maurice Blackburn Lawyers also filed a class action against AMP seeking compensation for shareholders alleging it breached the Corporations Act for failed to disclose its practice of charging fees for no service and for its interactions with ASIC.
Slater and Gordon were one of the five law firms to compete for the shareholder class action but Maurice Blackburn eventually won the right to continue on the case due to its funding model.
Eliot Hastie is a journalist at Momentum Media, writing primarily for its wealth and financial services platforms.
Eliot joined the team in 2018 having previously written on Real Estate Business with Momentum Media as well.
Eliot graduated from the University of Westminster, UK with a Bachelor of Arts (Journalism).
You can email him on: [email protected]