This blog piece provides an update about the class action against Colonial First State and Commonwealth Bank (CBA), the first class action launched in our ‘Get Your Super Back’ campaign.
The Court recently granted us permission to file an amended statement of claim that adds two new claims to the case, relating to term deposits and adviser commissions.
The first claim extends the case to cover term deposits. Members of Colonial can choose to place part of their super in term deposits. The only term deposits Colonial offers are with CBA, even though other banks offered higher interest rates. We allege that Colonial should have demanded higher interest rates from CBA or offered term deposits from other banks.
The second claim relates to commissions paid by Colonial to financial advisers. For some members in FirstRate Saver and term deposits, we allege that Colonial has been paying the commissions out of the interest that belongs to members and that this was in breach of Colonial’s duties.
The original claims included in the class action cover FirstRate Saver in the Colonial funds and Cash Deposit, LifeStage and Balanced options in the Commonwealth Essential Super fund. We allege that Colonial invested the cash in these options with CBA at interest rates below the rates available from other banks.
Common Fund Order
The Court has approved the funding arrangements for the class action. This means that in exchange for funding the class action, the litigation funder Augusta Ventures Limited will be entitled to receive a commission from any settlement or judgment awarded by the Court in an amount to be determined by the Court at the time of settlement or judgment.
What do you have to do?
Nothing. If you were ever invested in any of the investment options that are included in the class action then you are automatically a group member.
There are many steps in the legal process that we need to follow before the case proceeds to a trial or settlement. We will update you when significant developments occur.
What else is happening in Get Your Super Back?
We recently announced that we will shortly commence our next Get Your Super Back class action against AMP.
We are also continuing to investigate further class actions against Colonial and other retail super funds, and we expect a number to be launched soon.
Get Your Super Back
If you belong to a retail or bank super fund, you may be owed thousands of dollars for excessive fees and mismanaged investments. We believe you can and should get that money back
Meet the team
Find out more about some of the lawyers working on the Get Your Super Back campaign