AMP has reached an agreement in principle to settle a landmark class action over fees charged to members of its superannuation funds, with $120 million earmarked for affected members.
The settlement, still subject to Federal Court approval, will see AMP contribute roughly $75 million, with the remainder covered by insurance.
The group has not admitted any wrongdoing, it confirmed in an ASX listing.
The class action, led jointly by Maurice Blackburn and Slater and Gordon, alleged that AMP’s superannuation trustees failed to act in members’ best interests between 2008 and 2020, overcharging fees and offering lower returns on cash-only fund options.
“This settlement is a major step toward justice for millions of Australians who trusted AMP to safeguard their retirement savings,” said Rebecca Gilsenan, Maurice Blackburn’s national head of class actions.
“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 Emma Pelka-Caven said the case 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.
AMP CEO Alexis George described the settlement as a chance to put a “legacy matter” behind the business.
“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,” she said.
The proceedings were launched in 2019, following revelations during the Hayne royal commission into misconduct in the financial services industry. Two separate actions were later consolidated into a single class action by the Federal Court.
