Slater and Gordon files class action suit against AMP

Slater and Gordon has filed a class action lawsuit against financial services firm AMP, seeking redress for superannuation fund members who are alleged to have been cheated through unreasonable fees.

The lawsuit is the latest in a series of suits filed against AMP after revelations from the Royal Commission found that the firm’s superannuation funds were charging uncompetitive administration fees.

The lawsuit alleges that, through arrangements entered into with related parties, trustees AMP Super and NM Super overpaid related AMP entities for administration services. The case also alleges that the trustees failed to secure an appropriate return on cash-only investment options.

“Superannuation members trusted that AMP would act in their best interests at when managing their retirement savings. Instead, they charged exorbitant fees,” said Nathan Rapoport, senior associate at Slater and Gordon. “Both AMP Super and NM Super, as trustees of the funds, should have taken steps to secure the best deal for members on a commercial arms-length basis.

Rapoport also alleged that the fund’s interest rates were below what members could get in the open market.

“Members whose funds were deposited in cash-only investment options were short-changed potentially thousands of dollars because they received interest rates below what a reasonable and diligent trustee could have obtained on the open market,” said Rapoport. “These customers would have been better off keeping their retirement savings under their bed.”