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Class action lawsuit launched against bank-owned funds

Class action lawsuit launched against bank-owned funds

Eliot Hastie
— 1 minute read

Slater & Gordon has announced today the launch of what could potentially be Australia’s largest class action lawsuit.

Slater & Gordon is launching the ‘Get Your Super Back’ campaign today and says it will involve a series of class actions with Colonial First State and AMP likely to be their first targets.

“The firm will allege the big bank-backed super funds failed to obtain for members competitive cash interest rates on cash option funds, and charged exorbitant fees, affecting millions of members who held part or all of their superannuation in bank-owned funds,” they said.

The allegations arise from evidence given to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry and information released in the Productivity Commission report.

The Productivity Commission report released in May found that retail super funds only brought in members 4.9 per cent per annum in contrast to the 6.8 per cent per annum brought in by industry funds.

The Productivity Commission report also found that retail funds frequently underperformed and charged more fees than industry funds.

More to come. 

 

Class action lawsuit launched against bank-owned funds
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