Colonial First State controversies

Adviser-fee class-action settlement

CFS settled a $100 million class action alleging that fees charged to superannuation members were increased to support continuing adviser commissions. The settlement included no admission of liability or wrongdoing.

ASIC conflicted-remuneration proceedings dismissed

ASIC's proceedings concerning alleged conflicted remuneration paid by CFS to Commonwealth Bank for distributing a CFS superannuation product were dismissed by the Federal Court. The regulator's appeal was dismissed in 2023.

Default superannuation transfer class-action settlement

CFS settled a $56.3 million class action alleging delays in transferring beneficiaries' accrued default amounts to a MySuper product. The settlement included no admission of liability or wrongdoing.

Misleading superannuation member communications

The Federal Court found that CFS had misled members about whether legislative changes required them to provide an investment direction to remain in the FirstChoice Fund. CFS was fined $20 million and paid $67 million in remediation to 5,815 members.

Colonial First State fined $20 million over misleading members

Fine or penalty

Colonial First State was fined $20 million for misleading members in its FirstChoice Fund.

Colonial First State sued over alleged delays moving members to lower-fee products

Lawsuit filed

Colonial First State was sued over allegations that it failed to move members out of high-fee default investment options quickly enough. Maurice Blackburn Lawyers said the delay caused substantial losses to over 100,000 members of its FirstChoice Employer Super fund.