Suncorp faces superannuation class action over advice fees

An Australian insurance giant is facing a class action lawsuit, against its unit managing superannuation funds, over the improper charging of fees.

Suncorp said it would defend Suncorp Portfolio Services against the class lawsuit filed in the New South Wales Supreme Court by law firm William Roberts Lawyers and Litigation Capital Management on behalf of members of Suncorp Super Funds.

William Roberts Lawyers alleges Suncorp Super “executed agreements to entrench fees that would otherwise have become unlawful or unenforceable,” Reuters reported.

“We have formed the view that, since July 01, 2013, Suncorp Super members have been wrongfully stripped of hard-earned monies used for the payment of commissions and other fees to financial advisers. Those monies should now be repaid,” the firm said in a statement issued on May 31.

Read more: Regulators unlikely to prosecute alleged crimes exposed at the royal commission

The suit is one of at least 11 lawsuits that have been filed against major financial firms in the aftermath of the royal commission inquiry which exposed widespread misconduct including the alleged overcharging of fees, Reuters said.