Suncorp has agreed to settle on a class action brought forward by its members in 2019 in relation to advice charges used to pay conflicted remuneration to financial advisers.
It has been confirmed this week that Suncorp has agreed to pay $33 million to settle all claims brought forward by William Roberts Lawyers.
A copy of the pleading reads that "conflicted remuneration" refers to any commission paid to financial services licensees in relation to Suncorp products, including commissions on contributions, ongoing commissions paid on account of balances of member accounts, commissions on insurance premiums and amounts paid on the total amount of funds that licensees introduced to Suncorp.
It also includes any benefit given to a licensee who provided product advice to retail clients who "could reasonably be expected to influence the choice of financial product recommended by the licensee" and the financial product advice given.
The class action brought forward in 2019 alleged that Suncorp Super executed agreements to entrench fees that would have become unlawful or unenforceable.
The action was brought on behalf of members of Suncorp Super Funds to recover compensation for members whose accounts were impacted by charges used to pay conflicted remuneration to financial advisers from 1 July 2013.
“We have formed the view that, since 1 July 2013, Suncorp Super members have been wrongfully stripped of hard-earned monies used for the payment of commissions and other fees to financial advisers," William Roberts Lawyers principal Bill Petrovski said at the time.
"Those monies should now be repaid.”
The settlement approval hearing is set to go ahead on 22 September 2022.