AMP settles class action for $120 million
AMP has settled a class action brought against N.M. Superannuation, AMP Superannuation and AMP Services, agreeing to pay $120 million.
The class action was brought on behalf of superannuation clients and their beneficiaries for the period of July 2008 to May 2020. The proceedings related to fees charged to members of certain AMP superannuation funds, and the interest rates received, and fees charged, on cash-only fund options.
AMP said it would contribute $75 million to the $120 million settlement, with the balance to be met by insurance.
AMP said in reaching a settlement, it makes 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.
"We have transformed our superannuation offer in recent years and we remain focused on delivering for members, through strong investment returns, competitive fees and insurance, and quality service to our members."
Maurice Blackburn Lawyers and Slater and Gordon were jointly leading the class action.
The firms alleged that 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. As a result, AMP's superannuation members were alleged to have been overcharged.
"This settlement is a major step toward justice for millions of Australians who trusted AMP to safeguard their retirement savings," Maurice Blackburn national head of class actions Rebecca Gilsenan said.
"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 was initiated in 2019 following revelations during the Hayne 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 Maurice Blackburn and Slater and Gordon.
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, subject to Federal Court approval, will provide financial redress to eligible AMP superannuation members.
This article first appeared on Financial Standard
Get stories like this in our newsletters.
