William Roberts Lawyers and Litigation Capital Management have followed up on intentions last month to bring a class action through the NSW Supreme Court against Suncorp Super.
The class action will allege that Suncorp Super executed agreements to entrench fees to be used for payment of conflicted remuneration to financial advisers that have become banned and unlawful from 1 July 2013 as a result of the Future of Financial Advice reforms, William Roberts said in a statement.
Further, the class action will allege Suncorp Super breached its duties to avoid conflicts, act with due care and diligence and act in the best interests of its members.
However, William Roberts said “it is not proposed that any financial advisers be sued in the class action”.
LCM will fund the class action on a ‘no win, no pay’ basis in accordance with the terms of a funding agreement or terms imposed by the court.
If the class action is successfully resolved and there is a recovery of compensation, LCM will be entitled to reimbursement of the costs it has spent plus a commission from such recovery only.
In a statement to the ASX on Monday, Suncorp confirmed it received the representative proceeding and that it will defend the matter.
Seeing as a result of all of this regulatory change has been to increase the payments to lawyers, (that is the sum result) then why isnt the court recommending a % of the commission paid out with these class actions, be paid across to ASIC to assist funding for them? This would reduce and may even negate the costing to Financial Advisors?
lawyers getting a commission is allowed. they can do anything. that’s the law. because they wrote it to benefit themselves. that is how the game is played.
you disagree? look at the number of parliamentarians who are lawyers, former lawyers, failed lawyers, half wit lawyers, or have law degrees it is astounding.
all the laws they pass are in the best interest of themselves, then second the Australian people
LCM receives a commission??? Is that not conflicted remuneration???
The Court actions against superannuation Trustees continue. D&O insurers must be looking worryingly at their book, policy wording and their premiums…
Am I the only one that sees the irony of the lawyers receiving a commission………..
the best business of the future will be to be a lawyer and into class action. get it funded by a litigation funder and away you go. boy oh boy what a great business to get into.in the end the litigation funder gets their dough and the lawyers get their fees, leaving very little for aggrieved party, but hey that’s life