Suncorp faces class action over advice fees
A class action has been filed against Suncorp’s superannuation trustees over conflicted advice fees charged to super customers over the past six years.
The action alleges Suncorp Super executed agreements that allowed it to entrench conflicted financial advice fees to members’ accounts that would otherwise have become illegal or unenforceable, breaching its duty to avoid conflicts of interest, act in members’ best interests and act with due care and diligence.
The action, relating to advice fees charged since July 1 2013, was brought by William Roberts Lawyers and litigation funder Litigation Capital Management.
No financial advisers will be included in the class action.
“We have formed the view that… Suncorp Super members have been wrongfully stripped of hard-earned monies used for the payment of commissions and other fees to financial advisers,” William Roberts Principal Bill Petrovski said. “Those monies should now be repaid.”
Advice commission fees arranged before the banning of commissions under the Future of Financial Advice reforms in 2013 were grandfathered, meaning they could continue to be paid.
Suncorp has told the sharemarket it will defend the action.