The latest class action, filed by Slater and Gordon, is against Westpac’s subsidiary companies BT Funds Management and Westpac Life Insurance Services.
The action relates to aspects of BTFM’s BT Super for Life cash investment option, with the damages sought by the claim unspecified at the time.
Slater and Gordon filed the class action on behalf of superannuation members who were short-changed by the bank’s super funds and is the third class action to be filed by the law firm as part of its Get Your Super Back campaign.
The case alleges BT was short-changing its members who invested in the super for life cash-only option by investing through Westpac Life and allowing it to earn substantial fees for providing no valuable service.
BT, rather than directly investing funds, chose to use Westpac Life as an intermediary, which then invested the money in an externally managed cash fund.
Special counsel Nathan Rapoport at Slater and Gordon said Westpac Life was given discretion about the rates that it would pass on to members and at times kept almost half of the returns.
“Superannuation members trusted BT with their retirement savings, but instead of seeking the best returns available for members, it appears BT chose to line the pockets of another entity in the Westpac group at the expense of its members,” Mr Rapoport said.
Mr Rapport said Westpac Life achieved reasonable returns on money, but the arrangement meant they kept most of the benefit for itself.
“We believe Westpac Life provided no service that could justify it retaining such a large part of the returns generated from members’ money, and we want the difference paid back to members.”
Both BT Funds Management and Westpac Life Insurance Services said they would be defending the claims in an ASX release.
The legal action is the latest against the bank, which is also fighting off a Maurice Blackburn class action in relation to alleged breaches of responsible lending obligations under the Consumer Credit Protection Act.
Westpac recently did have a win as ASIC’s case against the bank over lending laws was dismissed by the Federal Court in August.
hopefully they win and I get my 50 cents back…. S&G will be the only winners here.
why don’t the legals go after industry super funds too. for example how is it possible that Australian Super can run their business & only charge their members $2.25 per week admin fee. the money to run the business has to come from somewhere… returns, deals with fund managers, kick backs from insurers, deals with construction projects.. come on legals get brave & take them on
buy Slater and Gordon Shares! They’ll be the only winners in this mess!
*General Advice Only* ?