Superannuation fund facing class action over payments to financial advisers.
Williams Roberts Lawyers and Litigation Capital Management (LCM) are proceeding with a class action against Suncorp Super over payments to financial advisers.
The class action alleges that Suncorp Super executed agreements to entrench fees to be used for payment of conflicted remuneration to financial advisers that would otherwise have become banned and unlawful from 1 July 2013 as a result of the Future of Financial Advice Reforms (FOFA Reforms).
In doing so, the class action will allege Suncorp Super breached its duties to avoid conflicts, act with due care and diligence and act in the best interest of its members.
From 1 July 2013, FOFA Reforms banned conflicted remuneration for financial advisers – commissions and other payments that could reasonably influence the advice given to retail clients. Under ‘grandfathering provisions’ of the FOFA Reforms, certain commissions or other payments to be made under an arrangement entered into prior to 1 July 2013 were exempt from the ban.
The proposed class action will be brought on behalf of members of the Suncorp Super Funds whose accounts have been impacted by the payment of the conflicted charges from 1 July 2013.
The class action will be funded by LCM on a ‘no win, no pay’ basis. If the class action is successfully resolved and there is a recovery of compensation, LCM will be entitled to reimbursement of the costs it has spent plus a commission.
Class action members do not have to pay anything in the event that the class action is unsuccessful, as LCM agrees to pay any legal costs that might be awarded to the Suncorp Super or any other defendants.
If you are affected or believe you may be affected but are unsure, you can register you interest in the class action at williamroberts.com.au.
Did you have a superannuation account with Suncorp Super? Do you think you might have a case to get a refund on some of your superannuation charges? Will you sign up to the class action?
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