POWERED BY MOMENTUM MEDIA
OnePath, ANZ cop $50m fine in super class action settlement
A super trustee and a big four bank have settled a class action commenced in 2020.
OnePath Custodians (OPC), together with ANZ and Zurich Australia, has reached an agreement to settle the class action commenced by Slater and Gordon in December 2020 for a total of $50 million.
In a statement on Friday, OPC said it will contribute $22 million to the settlement, with ANZ adding $14 million. It is implied that Zurich Australia will cover the remaining amount.
According to the superannuation trustee, the class action was filed on behalf of certain members of the former OnePath Master Fund and Retirement Portfolio Service at the time when ANZ owned OnePath Custodians and OnePath Life.
“It relates to historical issues regarding interest rates paid on members’ investments in certain cash investment options in the period prior to January 2020 and the payment of grandfathered commissions to financial advisers in the period prior to April 2019,” it said.
According to Slater and Gordon’s website, the class action claims the trustee of these super funds breached its duties by charging excessive fees to pay unnecessary commissions to financial advisers, providing no added benefit to members. It also alleges the trustee invested members’ cash with its parent bank ANZ, instead of seeking better interest rates, leading to inadequate returns for members.
It further alleges that ANZ and its former subsidiary OnePath Life were involved in the trustee’s breaches.
The settlement is subject to court approval and is made without any admission of liability or wrongdoing by any of the respondents.
In a separate statement, ANZ also acknowledged the settlement, saying it would contribute $14 million.
AUTHOR
Jessica Penny
Recommended for you
A former property developer has been sentenced to eight years’ imprisonment for defrauding super investment funds, ASIC has confirmed.
The government wants greater transparency over super fund offerings and member outcomes in retirement phase at both an individual trustee and industry level.
AMP has reported a stable half-year result in superannuation, with improving cash flows and solid support from platforms and banking.
Implementing an unlimited non-concessional contributions cap for taxpayers with superannuation balances below $1 million would make the system more equitable, the accounting firm says.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
