Finance Finance News AMP hit with new superannuation class action over ‘dishonest’ fees

AMP hit with new superannuation class action over ‘dishonest’ fees

amp financial planners
AMP-aligned financial planners say they are being ruined by changes to the rules about buying back their businesses. Photo: ABC
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Wealth manager AMP has been hit with a class action lawsuit for allegedly charging superannuation fund members “unjustifiably” high fees for an extended period of time.

Law firm Maurice Blackburn on Thursday said it had filed a class action lawsuit on behalf of all AMP superannuation fund account holders.

An AMP representative said the company had not been served with any proceedings on the matter, and that it would “defend the matter vigorously” if served.

“On the basis of the information provided to us by the media, we understand the potential action relates to AMP superannuation trustees and AMP meeting its obligations to members. On this basis, we would defend the matter vigorously, if served,” it said in a statement.

Maurice Blackburn principal lawyer Brooke Dellavedova said there could be large damages against the financial company.

“Collectively we believe there are about 2.5 million accounts, so the damages are likely to be very, very significant,” she told the ABC.

The company is already facing action from its shareholders, after its stock price plummeted following the financial service royal commission.

It is also being taken to court by the Australian Securities and Investments Commission, which is seeking civil penalties against the company.

The 170-year-old AMP was one of the more prominent firms to feature at the royal commission, where it faced accusations of wrongdoing including charging clients for advice they never received.

AMP subsequently lost its chairman and chief executive officer, haemorrhaged billions of dollars in funds and was slapped with lawsuits.

This month AMP shareholders voted in favour of the company’s remuneration report, but the leadership team says further uncertainty awaited as it embarks on a multiyear journey to lift earnings and rebuild its share price.

-with AAP