AMP super class action finally hits court

A class action that was filed against AMP for charging excessive superannuation fees is finally being heard in court, with the trial kicking off today.

In 2019, following the Royal Commission, several law firms sought to commence class actions against AMP in relation to fees charged to superannuation members. Slater and Gordon and Maurice Blackburn were among the firms, which were later ordered to consolidate their cases.

Slater and Gordon was ordered to represent the plaintiffs and has been running the case alongside Maurice Blackburn. AMP has staunchly defended the allegations since the initial filing.

But the two firms have finally got their day in court, with a seven-week trial commencing today.

Their case claims more than 2.5 million Australians with superannuation accounts with AMP were systematically overcharged between 2008 and 2020 - "especially those in uncompetitive, high fee products, MySuper products, cash, and term deposits."

The central claims relate to administration fees charged on Flexible Lifetime Super accounts, MySuper accounts, and overcharging investment fees on cash and term deposits.

"No other retail fund was charging investment fees on cash or term deposits like AMP," Slater and Gordon said.

The products called into question by the class action are:

• SignatureSuper Corporate
• SignatureSuper Personal
• SignatureSuper Allocation Pension/Term Pension
• SignatureSuper Select
• CustomSuper Employer
• SuperLeader
• AMP Flexible Lifetime - Super
• AMP Flexible Lifetime - Super (Personal)
• AMP Flexible Lifetime - Allocated Pension
• AMP Flexible Lifetime - Term Pension 
• AMP Flexible Lifetime (Super and Retirement)
• AMP Flexible Super - Super
• AMP Flexible Super - Retirement
• Eligible Rollover Fund (ERF)
• Simple Super
• Simple Super Rollover Plan
• Super Directions for Business
• Super Directions for Business Rollover Section
• Tailored Super 
• Tailored Super Rollover Plan

The initial claims also covered platform funds, being Wealth Personal Superannuation and Pension Fund and The Retirement Plan, and legacy products which were closed to new members for most or all of the period in question, but these claims were discontinued.

"We believe the evidence in this case will show that AMP was driven by profit and not the best interests of its superannuation members - made up of millions of hardworking Australians," said Emma Pelka-Caven, Slater and Gordon's head of class actions.

"This is about justice for ordinary Australians. These are people who trusted AMP to safeguard their retirement savings - and instead lost thousands of dollars."

Meantime, Maurice Blackburn's national head of class actions Rebecca Gilsenan said the conduct represents a serious failure of duty, transparency and fairness.

"The class action alleges that AMP superannuation trustees were deferential to the financial interests of the AMP Group at the expense of the interests of members. This had a harmful impact on millions of AMP superannuation account balances," she said.

"Millions of Australians were unknowingly short-changed over years. Through this class action, AMP superannuation account holders are seeking accountability and to be restored to the position they would have been in had the AMP trustees complied with their duties."