Commonwealth Bank of Australia's superannuation unit is facing a class-action suit, its second in a week, over allegations of overcharging customers for financial advice.
Law firm Slater and Gordon filed a class action against Colonial First Investments Ltd., alleging that Colonial failed to act in the best interests of its members of the FirstChoice Super fund since 2013, and charged them higher fees to pay for ongoing commissions to financial advisers who were not required to provide any ongoing services to members.
CBA acknowledged the class action and said it is reviewing the claim.
The bank's superannuation unit is facing another class action from lawyers at Maurice Blackburn for allegedly failing to transfer customers to the low-cost MySuper product in a timely manner.
Nathan Rapoport, Slater and Gordon's special counsel, said in a statement that the Australian government had banned commissions to financial advisers for new members since 2013. However, Colonial continued to do so and charge those members higher fees, he added.
"We allege that Colonial should have stopped paying the commissions for all its members and reduced their fees accordingly, as it properly did for new members," Rapoport said.
The class action is being funded by litigation funder, Augusta Ventures.