CBA subsidiary taken to Federal Court
A Commonwealth Bank subsidiary is being taken to the court for allegedly misleading or deceiving superannuation customers.
Australia's corporate watchdog has launched civil action against Colonial First State Investments, saying it failed to move almost 13,000 customers into simple, low-cost MySuper default products following new laws in 2014.
Colonial is accused of misleading or deceiving customers in calls and letters between March 2014 and August 2016.
Members were asked to confirm their investment option. They weren't told they could be moved to the low-cost product or were told it would incur a fee when this wasn't the case, the Australian Securities and Investments Commission says.
The prosecution stems from the banking royal commission, which was in 2018 told Colonial had been concerned the changes would hurt revenue.
CBA owns Colonial and says the allegations are being reviewed.
The case is expected in the Federal Court at a date to be fixed.
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