AMP’s $120 million settlement is subject to Federal Court approval. (Source: NCA Newswire)
AMP has settled a superannuation fees class action for $120 million, with millions of Aussies in line for compensation. The class action was brought on behalf of superannuation customers who were allegedly overcharged fees on their retirement savings.
The class action, led by Slater and Gordon and Maurice Blackburn Lawyers, alleged that AMP paid too much to related entities for administration services, resulting in members being charged excessive fees. It also claimed funds were held in cash-only investment options, so members received low interest rates.
Maurice Blackburn’s national head of class actions Rebecca Gilsenan said the $120 million settlement was a “major step toward justice for millions of Australians who trusted AMP to safeguard their retirement savings”.
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“The class action alleged that AMP’s superannuation trustees prioritised the financial interests of the AMP Group over those of its members,” she said.
“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.”
Slater and Gordon’s head of class actions Emma Pelka-Caven said the outcome sent a strong message to super 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,” she said.
In reaching the settlement, AMP made no admission of liability.
“The settlement of this class action is another important step forward for AMP, which means we can put this legacy matter behind us,” AMP chief executive Alexis George said.
Of the $120 million, about $75 million will be paid by AMP, while the remainder will be paid by insurance.
The case was initiated in 2019 following the Banking Royal Commission, with the Federal Court later ordering two separate proceedings to be consolidated into a single class action jointly run by the law firms.
The $120 million settlement is still subject to Federal Court approval, with further details about the distribution process to be available in due course.
You do not need to take any action at this stage.
The settlement will provide compensation to eligible AMP superannuation members, with the claim including more than two million members.
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Maurice Blackburn notes you can register for the class action if you held one or more super account with AMP, other than Platform Fund or Mature Product, at any time from:
July 1, 2008 for members of the AMP Superannuation Savings Trust, AMP Retirement Trust, or the Eligible Rollover Fund; or
March 30, 2011 for members of the Super Directions Fund.
You can find more information via Slater and Gordon, and Maurice Blackburn.
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