Suncorp has been hit with class action proceedings over superannuation commissions paid to financial advisers.
The financial services giant said on Monday it would defend the NSW Supreme Court proceeding against wholly owned subsidiary Suncorp Portfolio Services.
William Roberts Lawyers and litigation funder Litigation Capital Management Limited alleges 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 firm’s class action suit says 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 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.
Suncorp shares were worth $13.47 before trade on Monday having gained 6.65 per cent so far in 2019.
The company reported a 45 per cent decline in first-half profit in February following a jump in weather-related claims, while estimating the cost of regulatory improvements to increase from about $90 million to about $140 million.