Class action filed against AMP over super fees
Maurice Blackburn has filed a class action seeking compensation for AMP superannuation fund holders based on allegations that AMP charged uncompetitive administration fees in these funds, resulting in investment losses in some instances.
Class action law firm Maurice Blackburn Lawyers has filed a class action in the Federal Court which claims that the AMP trustees, whose duty was to act in the best interests of members, “failed to monitor, compare, negotiate or seek reductions of hefty fees being pocketed by related AMP Group companies”.
In a public statement, the law firm stated that the class action builds on findings from the royal commission which it claims revealed that AMP’s superannuation funds were charging uncompetitive administration fees, with high costs exceeding returns and causing investment losses in some instances.
Maurice Blackburn principal lawyer Brooke Dellavedova said the law firm has estimates that over two million accounts have been impacted by AMP’s alleged misconduct.
Ms Dellavedova said the class action would allege that AMP trustees “breached statutory and general law obligations, essentially paying itself handsome fees from members’ funds”.
The law firm said that members who held one or more superannuation accounts with AMP at any time from 30 May 2013 can join the class the action.
“If you have had a superannuation account with AMP at any time since 30 May 2013, then you can sign up for this action to recover some of your lost funds, including compound growth amounts you missed out on,” she said.
An AMP spokesperson said the bank acknowledges that a superannuation class action proceeding has been filed against certain of its subsidiaries by Maurice Blackburn in the Federal Court in Melbourne.
The bank said the proceedings would be vigorously defended.
"AMP and the trustees of its superannuation funds are firmly committed to acting in the best interests of their superannuation members and acting in accordance with legal and regulatory obligations. We encourage any customers who have concerns to contact AMP," it said.
"In 2018, we cut fees on our flagship MySuper products, benefiting approximately 600,000 existing customers as well as new customers, improving member outcomes. In 2019, we also cut fees to MyNorth."
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.