A major class action against AMP will commence in the Federal Court today (27 May), with more than 2 million super members alleging the firm’s trustees overcharged fees over a 12-year period.
Led by Slater and Gordon and Maurice Blackburn Lawyers, over a period of seven weeks, the class action will see over 2.5 million Australians seek redress for years of alleged excessive fees on their superannuation accounts.
The class action alleges AMP trustees “systematically overcharged” members between 2008 and 2020, especially those invested in uncompetitive, high-fee products, MySuper products, cash, and term deposits.
The central claims relate to the “overcharging of administration fees on several large, expensive products”, the law firms said, such as Flexible Lifetime Super and MySuper accounts, alongside overcharging investment fees on cash and term deposits.
The firms allege that no other retail fund was charging investment fees on cash or term deposits like AMP.
Emma Pelka-Caven, Slater and Gordon’s head of class actions, said the firm believes the evidence of this case will demonstrate AMP was “driven by profit and not the best interests of its superannuation members”.
“This is about justice for ordinary Australians. These are people who trusted AMP to safeguard their retirement savings – and instead lost thousands of dollars,” she said.
The Hayne royal commission uncovered significant misconduct within AMP’s superannuation operations, including charging fees for no service, charging deceased customers, misleading regulators, and systemic governance and cultural failings.
Pointing to Kenneth Hayne’s findings, the law firms said that despite AMP’s attempts to “sweep aside the issues” highlighted during the royal commission, members are seeking compensation for the breaches they allege occurred over an extended period of time.
Rebecca Gilsenan, Maurice Blackburn’s national head of class actions, said AMP’s conduct reflects a serious failure of duty, transparency, and fairness.
“The class action alleges that AMP superannuation trustees were deferential to the financial interests of the AMP Group at the expense of the interests of members. This had a harmful impact on millions of AMP superannuation account balances,” Gilsenan said.
“Millions of Australians were unknowingly short-changed over years. Through this class action, AMP superannuation account holders are seeking accountability and to be restored to the position they would have been in had the AMP trustees complied with their duties.”
AMP continues to deny wrongdoing and has defended the class action since proceedings began in 2019.
