Class action takes aim at NAB super fund
Written on the 10 July 2019 by Business News Australia
Litigation funder IMF Betham is working with William Roberts Lawyers to bring a class action against NULIS Nominees, an MLC Super Fund trustee company owned by NAB (ASX: NAB).
The class action alleges the MLC Super Fund charged excess fees to its members from 1 July 2016 onwards.
It also argues the company breached obligations to act in the best interests of its members when it charged these excess fees from members' accounts in order to pay commissions and other fees to advisers.
IMF says the class action will seek to recover the excess fees charged plus interest on behalf of all affected members.
In 2013, the Future of Financial Advice Reforms (FOFA Reforms) banned conflicted remuneration for financial advisors.
This includes commissions and other payments that could influence advice given to clients. In 2016, MLC and NAB reorganised its superannuation fun structure and NULIS became the trustee for the MLC Super Fund.
The class action will argue that, as the new trustee, NULIS decided to maintain the conflicted charges that were being paid from members accounts to advisers prior to the company restructure. It is alleged that this constituted the breach of duty.
IMF says the action will be funded on a 'no win, no pay' basis and there are no out of pocket costs for class members to pay.
Registration is now open and no dates have been given yet as to when the action will go ahead.
This is the latest proposed class action in a collection that has already been launched against financial services providers following the 2017-2019 Royal Commisison.
In May, Maurice Blackburn launched an action on behalf of aggrieved AMP (ASX: AMP) shareholders.
Evidence presented at the Royal Commission revealed that AMP's superannuation funds were charging administrative fees with high costs exceeding returns and causing investment losses in some instances.
Maurice Blackburn's class action claims that AMP trustees failed to monitor, compare, negotiate or seek reductions of these fees being pocketed by the company.
Around a month after Maurice Blackburn commenced its action, Slater and Gordon (ASX: SGH) also took aim at AMP.
Most recently, William Roberts Lawyers has partnered with Litigation Capital Management (LCM) to bring a class action against Suncorp Group's (ASX: SUN) super funds trustee.
The proposed class action is brought on behalf Suncorp Super Funds members to recover compensation for those whose accounts were impacted by charges used to pay conflicted remuneration to financial advisors from July 2013 to today.
The two firms allege Suncorp Super executed agreements to entrench fees that would otherwise have become unlawful or unenforceable.
Further, the two firms say that Suncorp Super breached its duties to avoid conflicts, act with due care and diligence and act in the best interest of its members.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Author: Business News Australia