Westpac Banking Corp. subsidiaries BT Funds Management Ltd. and Westpac Life Insurance Services Ltd. are facing a class action lawsuit for allegedly not acting in the best interest of superannuation fund members and pocketing their returns.
Slater and Gordon filed the case Sept. 6 on behalf of superannuation members who were allegedly shortchanged by the bank's super funds, according to a release from the law firm. The class action alleged that BT Funds Management has been shortchanging its members who invested in the BT Super for Life cash-only option by investing through Westpac Life and allowing it to earn substantial fees for providing no valuable service. The funds manager then chose to use Westpac Life as an intermediary, which then invested the money in an externally managed cash fund, according to the law firm.
As a result, members potentially lost thousands of dollars over many years, Slater and Gordon claimed.
In a filing, Westpac confirmed the legal action and said BT Funds Management and Westpac Life will defend the claims.
