A class action that started in 2019 regarding the charging of fees to AMP superannuation customers has reached a $120 million settlement, subject to court approval, according to Maurice Blackburn Lawyers and Slater and Gordon.
The two legal firms jointly led the class action, which alleged AMP’s superannuation trustees failed in their duties to ensure fees were set and maintained at a level consistent with members’ best interests in the period from 2008 to 2020.
The action alleged the financial services firm paid too much to related entities for administration services, which resulted in excessive fees being forwarded onto members.
The class action also included claims where members’ funds that were held in cash-only investment funds were receiving interest rates lower than what was obtainable on the open market.
Maurice Blackburn national head of class actions Rebecca Gilsenan said: “This settlement is a major step toward justice for millions of Australians who trusted AMP to safeguard their retirement savings.
“The class action alleged that AMP’s superannuation trustees prioritised the financial interests of the AMP Group over those of its members.
“Transparency and fairness are fundamental to the integrity of the superannuation system and the financial security of Australians is placed at risk when those principles fall by the wayside.”
The case began in 2019 following the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
The Federal Court later ordered the consolidation of two separate proceedings into a single class action, jointly run by the two law firms.
Slater and Gordon head of class actions Emma Pelka-Caven added: “This outcome sends a strong message to superannuation trustees across the industry. Australians deserve to have their retirement savings managed with integrity and diligence. We are proud to have helped deliver accountability and compensation to those affected.”
The settlement is still subject to Federal Court approval and will provide financial redress to eligible AMP superannuation members, with further details about the distribution process to be made available in due course.
