The National Australia Bank Ltd (ASX: NAB) share price will be one to watch this morning after the banking giant was hit with another potential class action.
According to an announcement out of litigation funder IMF Bentham Ltd (ASX: IMF), it plans to launch a class action with William Roberts Lawyers against the bank’s MLC Super Fund trustee company, NULIS Nominees.
The release explains that the class action is relating to excess fees charged to members of the MLC Super Fund by NULIS from July 1 2016 onwards.
The claim will allege that NULIS breached its obligations to act in the best interest of the members of the MLC Super Fund, when it agreed to levy and levied these excess fees from member’s accounts in order to pay commissions and other fees to advisers.
According to the AFR, the law firm believes these excess fees are likely to exceed $100 million.
The class action announcement explains the background to the claim:
“From 1 July 2013, the Future of Financial Advice Reforms banned conflicted remuneration for financial advisors, being commissions and other payments that could reasonably influence the advice given to retail clients. Under ‘grandfathering provisions’ of the FOFA Reforms, certain commissions or other payments to be made under an arrangement entered into prior to 1 July 2013 were excepted from the ban.”
“In mid-2016 there was a reorganisation of the superannuation fund structures operated by the MLC/NAB group, with NULIS becoming the trustee for the MLC Super Fund. Members were transferred to the MLC Super Fund. NULIS, the new trustee, decided to maintain the Conflicted Charges that were being paid from Transferred Members’ accounts to advisers prior to 1 July 2016. The class action will allege that this decision by NULIS to maintain payment of the Conflicted Charges from 1 July 2016 and the making of such payments, constituted a breach of its duty to act in the best interest of the members of the MLC Super Fund.”
NAB has yet to comment on the news.
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of National Australia Bank Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
- Afterpay share price lower after raising $650 million via institutional placement – July 8, 2020 10:29am
- Rio Tinto share price on watch following broker downgrade – July 8, 2020 10:18am
- Splitit share price surges 24% higher after record second quarter growth – July 8, 2020 10:14am