Posted on 23 Dec 2020
Slater and Gordon has today filed a class action against ANZ and its former subsidiaries OnePath Custodians, and OnePath Life.
It is the fifth class action in the #GetYourSuperBack campaign arising out of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
The class action alleges that OnePath Custodians breached its duties as trustee of various superannuation funds by charging higher fees to super fund members in order to pay unnecessary commissions to financial advisers for no ongoing benefit for the members.
It also alleges OnePath breached its trustee duties by depositing certain cash investments with its then parent, ANZ Bank, for mediocre returns, rather than seeking the best possible interest rate for cash.
Slater and Gordon Principal Lawyer Kirsten Morrison said: “Over several years, the trustee invested members’ cash with parent company ANZ Bank. They did not shop around to get the best rate of return for super members.”
“Given how long this went on for, even small differences in the interest rate adds up and substantially reduces returns on members’ retirement savings, shortchanging them potentially thousands of dollars,” Ms Morrison said.
Ms Morrison said there was no justification for continuing to pay commissions to financial advisers, as established by the Banking Royal Commission.
“Paying these commissions – and as a result charging members higher fees – diverted hundreds of millions of dollars out of members’ retirement savings,” she said.
“Members received no benefit from commissions, which instead supported a referral-based business model and paid financial advisers.
“We allege that the trustee should have stopped paying commissions and high fees for all its members, as it did for new members, rather than disadvantaging those who joined before mid-2013.
“In both cases it is a clear and simple case of the trustee not acting in the best interests of its members. We believe that the trustee’s conduct was in breach of the law and it should be held to account and required to compensate its members.”
The class action was filed in the Federal Court.
Group members are automatically covered by the class action, so don’t need to take active steps to register just yet. However, they are encouraged to register their details to receive more information and updates along the way at https://www.slatergordon.com.au/anz-and-onepath-super-class-action
Media Contact Therese Allaoui (03) 9602 6844 / 0428 994 937