CBA, super arm facing big lawsuit

COMMONWEALTH Bank and its wealth management arm Colonial First State have been hit by a class action law suit over allegedly uncompetitive superannuation returns.

Law firm Slater and Gordon has filed proceedings in Federal Court and claims damages could exceed $100 million for superannuation members.

The action alleges Colonial First State invested the retirement savings of its members with its parent bank, where the cash received uncompetitive bank interest rates.

CBA said it and Colonial First State would vigorously defend the proceedings.

“We will allege that by dumping members’ super with its parent bank, the CBA, Colonial First State failed to obtain the most competitive interest rate available for its members,” Slater and Gordon said yesterday.