Posted on 26 Jun 2019
Slater and Gordon has today filed a class action against AMP on behalf of more than two million Australians who have been gouged excessive fees on their AMP superannuation accounts.
This is the second class action to be filed as part of Slater and Gordon’s Get Your Super Back campaign launched off the back of the Banking Royal Commission in 2018.
The case alleges that, through arrangements entered into with related parties, trustees AMP Super and NM Super paid too much to related AMP entities for administration services.
It also alleges they failed to secure an appropriate return on cash-only investment options.
“Superannuation members trusted that AMP would act in their best interests at when managing their retirement savings. Instead, they charged exorbitant fees,” Senior Associate Nathan Rapoport said.
“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.
“Members whose funds were deposited in cash-only investment options were short-changed potentially thousands of dollars because they received interest rates below what a reasonable and diligent trustee could have obtained on the open market.”
The Royal Commission heard evidence of a particular group of AMP cash option members who received negative returns due to a combination of an un-competitive interest rate and excessive fees, and the trustee was not even aware of this.
“These customers would have been better off keeping their retirement savings under their bed,” Mr Rapoport said.
The case claims compensation for this conduct dating as far back as 1 July 2008.
The case is funded by Therium Litigation Finance.
Media Contact Therese Allaoui (03) 9602 6844 / 0428 994 937