Super class action targets bank funds
THE Cats may be out but finals fever is heating up in Geelong.
AFL Victoria’s annual Footy Festival will take over Geelong Cricket Ground at Kardinia Park on the Grand Final public holiday.
The free event, which is into its LAW firm Slater and Gordon says bank-owned super funds owe more than $1 billion to Australians being urged to join class actions to recover money “gouged” from their retirement savings.
Launching its Get Your Super Back campaign, Slater and Gordon said the Commonwealth Bank-owned Colonial First State and AMP were likely to be the first targets of planned class actions.
Members of those two institutions combined had lost more than half a billion dollars, it said.
The firm is targeting fee third year, hits Geelong for the first time and aims to build the hype on AFL Grand Final eve.
The first 500 children aged 12 and under who arrive on the day will receive a free football.
Organisers promise a host of gouging and the paying of uncompetitive interest rates to retirement savers who have part of their super in cash.
“This means that millions of Australians may be out of pocket and a handful of banks have lined their pockets,” said Slater and Gordon class action head Ben Hardwick.
Mr Hardwick said the firm intended to recoup as much lost super as it could.
The firm expects up to onethird of all adult Australians may be eligible to join the class actions.
“What funds like Colonial First State have been doing is dumping super with a parent bank, such as CBA,” he said.
“The interest from the par- family friendly activities, including live music, the Mik Maks, AFL player appearances, roving entertainment, footballthemed inflatables and the Grand Final Parade on the big screen.
“We are delighted that the free ent bank is so low investors in the cash option are receiving rates as low as 1.25 per cent a year. This is even below the RBA cash rate.
“This rate of return is ludicrously low. Standard bank interest should be around two to 2.5 per cent.
“That’s what most banks offer to ordinary customers with their normal termdeposits. And that’s what industry super fund members and some retail fund members have been getting.
“We don’t believe there is any justification for a bankowned fund member being worse off than industry fund members, especially when they have chosen to invest in a pass- Footy Festival will enable fans from Geelong and surrounds to share in the Grand Final festivities in their home region,” AFL Victoria community football and development manager Stephen O’Donohue said. ive cash investment option, which requires the fund to do basically nothing.”
The move follows evidence at the royal commission of misconduct by the major banks.
Slater and Gordon will be pressing for retail super fund members to be compensated for the difference between their returns on cash, and the returns they should have received “if the trustee had done their job properly”.
Banks had been taking Australian for a ride, Mr Hardwick said.
“It’s been about lining their own pockets: about propping up their profits and undermining the entire scheme.”
“Whether your team is in the Grand Final or not, people will be able to soak up the atmosphere and enjoy free entertainment for the whole family.”
The event runs from 10am-3pm on Friday, September 28.
Evidence at the royal commission has also included revelations of high fees whittling away savings by AMP, and cases where Colonial First State failed to move customers from a high-fee fund to a lowfee fund.
“We’re happy the royal commission has exposed these dodgy practices, but we don’t believe exposure is good enough,” Mr Hardwick said.
“We now think it’s time that Australians got their super back from the big banks.”
The Commonwealth Bank said it was aware Slater and Gordon was investigating class actions but it had not been served with any proceedings.
THE AUSTRALIAN