Class Action Begins: Millions of superannuation members head to court over alleged overcharging by AMP\
A major class action against financial services giant AMP will begin in the Federal Court today, as more than two million Australians seek redress for years of alleged excessive fees on their superannuation accounts.
The class action, led by Slater and Gordon and Maurice Blackburn Lawyers, claims that AMP trustees systematically overcharged members between 2008 and 2020 – especially those invested in uncompetitive, high fee products, MySuper products, cash, and term deposits.
The central claims are in relation to overcharging of administration fees on a number of large, expensive products sch as Flexible Lifetime Super, MySuper accounts, as well as overcharging investment fees on cash and term deposits. No other retail fund was charging investment fees on cash or term deposits like AMP.
“We believe the evidence in this case will show that AMP was driven by profit and not the best interests of its superannuation members – made up of millions of hardworking Australians,” said Emma Pelka-Caven, Slater and Gordon’s Head of Class Actions.
“This is about justice for ordinary Australians,” Pelka-Caven said. “These are people who trusted AMP to safeguard their retirement savings – and instead lost thousands of dollars.”
Despite Hayne’s suggestion that AMP was seeking to sweep aside the issues highlighted with its operating model during the Financial Services Royal Commission, through this proceeding, members seek compensation for the breaches they allege occurred over an extended period of time. AMP continues to deny wrongdoing and has defended the class action since proceedings began in 2019.
“AMP’s conduct represents a serious failure of duty, transparency and fairness. The class action alleges that AMP superannuation trustees were deferential to the financial interests of the AMP Group at the expense of the interests of members. This had a harmful impact on millions of AMP superannuation account balances,” said Rebecca Gilsenan, Maurice Blackburn’s National Head of Class Actions.
“Millions of Australians were unknowingly short-changed over years. Through this class action, AMP superannuation account holders are seeking accountability and to be restored to the position they would have been in had the AMP trustees complied with their duties”
The trial, set to run for seven weeks, is expected to shed further light on egregious misconduct by AMP, which was not part of the Hayne Royal Commission, and will now come to light.
More than 2.5 million Australians received court-approved notices confirming their eligibility in the class action.
Media Contact:
Slater and Gordon media contact Kate Van Poelgeest: 0434 181 353 kate.vanpoelgeest@slatergordon.com.au / Maurice Blackburn media contact Paddy Murphy: 0490 297 391 pmurphy@mauriceblackburn.com.auMedia contacts:
Slater and Gordon media contact Kate Van Poelgeest: 0434 181 353 kate.vanpoelgeest@slatergordon.com.au
