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, have 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 confirmed 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, confirming it would contribute $14 million.