POWERED BY MOMENTUM MEDIA
Suncorp to defend class action over fees
Conflicted fees are once again a hot legal topic, with Suncorp being hit with a class action in the New South Wales Supreme Court over superannuation commissions paid to advisers.
Law firm, William Roberts Lawyers, and the litigation funder backing the action, Litigation Capital Management, today filed the action against Suncorp’s wholly-owned subsidiary, Suncorp Portfolio Service Limited, which was a trustee responsible for the administration of Suncorp Super Funds.
Suncorp planned to put up a fight against the charges, announcing on the Australian Securities Exchange (ASX) today that “the matter will be defended”.
The class action, initially announced in June, would allege that Suncorp Super executed agreements to entrench fees to be used for payment of conflicted remuneration that would otherwise have been banned from 1 July, 2013, under the Future of Financial Advice reforms.
In this, William Roberts Lawyers would allege that Suncorp Super breached its duties to avoid conflicts, act with due care and diligence, and act in its members’ best interests. The law firm specified that the company would be the subject of the proceedings however, saying it didn’t propose suing any of the financial advisers receiving the fees.
Recommended for you
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
