Suncorp shares edged higher in yesterday’s generally stronger market (the ASX 200 was up 0.4%) after it released a short statement saying it had received notice of a class action being filed against it involving superannuation commissions paid to financial advisers.
The Brisbane-based company said on Monday it would be defending the NSW Supreme Court proceeding against wholly-owned subsidiary Suncorp Portfolio Services.
Law firm, William Roberts Lawyers and litigation funder Litigation Capital Management Limited have launched the action and allege that fees paid to advisers breached Suncorp Super’s duties to avoid conflicts, act with due care and diligence, and act in the best interest of its members.
The class action suit claims Suncorp Super executed agreements to entrench fees for conflicted remuneration to financial advisers that would otherwise have become banned and unlawful from July 1, 2013, as a result of Future of Financial Advice Reforms.
William Roberts’s action is not proposing that any financial advisers be sued in the action.
“The main compensation to be sought for affected Suncorp Super members will effectively be a refund of the conflicted charges to members plus interest,” William Roberts said in a release on its website.
“The main compensation to be sought for affected Suncorp Super members will effectively be a refund of the Conflicted Charges to members plus interest,” the law firm said.
“The proposed class action will be brought on behalf of members of the Suncorp Super Funds whose accounts have been impacted by the payment of the Conflicted Charges from 1 July 2013.”
Suncorp shares edged up one cent yesterday to $13.48.
