This class action was filed on 22 January 2020.
Registration is now open.
We have filed a class action against two companies formerly in the NAB group, MLC Nominees Pty Limited, the former trustee of The Universal Super Scheme, and NULIS Nominees (Australia) Limited, the trustee of the MLC Super Fund. The class action alleges that the trustees breached their duties to superannuation fund members invested in the MasterKey Business Super and MasterKey Personal Super products, after the introduction of the MySuper reforms in 2013.
Am I eligible to join the class action?
You can register for the MLC MySuper class action if:
- your superannuation was invested in the MLC MasterKey Business Super or the MLC MasterKey Personal Super product (MasterKey) and you held an accrued default amount in MasterKey that was transferred by NULIS to a MySuper product in the MLC Super Fund on or about 3 December 2016 or 25 March 2017; or
- you received payment from a deceased MasterKey member of all or part of their interest that was transferred by NULIS to a MySuper product in the MLC Super Fund on or about 3 December 2016 or 25 March 2017; or
- you were the spouse of a MasterKey member and under the Family Law Act or a superannuation agreement you received a transfer of the member’s interest that was transferred by NULIS to a MySuper product in the MLC Super Fund on or about 3 December 2016 or 25 March 2017.
Signing up to the class action will not expose you to any upfront costs. All costs in the proceeding will be borne by Maurice Blackburn unless and until there is a successful outcome. In the event of a successful outcome, any costs payable by Maurice Blackburn will be deducted from, and will not exceed, any compensation that you're entitled to receive. All such costs are required to be considered and approved by the Court.
About this class action
The class action alleges that MLC Nominees Pty Limited and NULIS Nominees (Australia) Limited breached their duties in the management of superannuation assets held on trust on behalf of beneficiaries, and failed to act in the beneficiaries’ best interests.
This includes failing to:
- exercise the degree of care, skill and diligence required of a prudent superannuation trustee,
- perform their duties and exercise their power in the best interest of beneficiaries, and
- give priority to the interests of beneficiaries where a conflict of interest arose.
The class action alleges that MLC Nominees Pty Limited and NULIS Nominees (Australia) Limited failed to transition over $6.8 billion of “accrued default amounts” of members within the MLC MasterKey Personal Super product and the MLC MasterKey Business Super product to the low-cost MySuper product, in a way that was both timely and in the best interests of those members.
Because of the delay, default members with “accrued default amounts” paid higher fees and commissions and received a lower investment return for an extended period of time.
What is MySuper?
The “Stronger Super” reforms, including legislation providing for default, low-cost superannuation products called “MySuper”, came into effect in 2012. The MySuper products were designed as no-frills superannuation products without unnecessary features and fees. The MySuper reforms recognised that many members effectively delegate all decisions concerning their superannuation investments to the trustees of their superannuation fund.
The purpose of the “MySuper” reforms was to provide simple and cost-effective default superannuation products for Australian workers who are often overwhelmed with the number and complexity of available superannuation options.
From 1 January 2014, new default contributions were required by law to be allocated to a MySuper product (except where the member had given an investment direction). Existing accrued default amounts were required to be transitioned by trustees to MySuper in accordance with their statutory and trustee duties.
Although the final statutory deadline for the transfer of ADAs to MySuper was 1 July 2017, Commissioner Hayne in the Financial Services Royal Commission stated that this was subject to the trustees’ other obligations to their members. Commissioner Hayne said that, in transferring members’ accrued default amounts to MySuper, NULIS and MLC Nominees “did not move with all deliberate speed … for fear of how advisers would react to the loss of commissions”. Commissioner Hayne concluded that the evidence showed that the trustees prioritised the interests of the NAB Group, or financial advisers, above the interests of fund members.
Frequently Asked Questions
These two names refer to the same proceeding. The case was previously referred to as the 'NAB MySuper Class Action' because when this case was commenced in January 2020, the Defendant trustees were part of the NAB Group. On 1 June 2021, the Defendant trustees were sold to Insignia Limited (formerly known as IOOF Limited). Following this sale, the class action is now referred to as the 'MLC MySuper Class Action'.
An accrued default amount is the balance of a member’s account where an investment choice has not been exercised by the member, or if it is held in a default investment option of the fund.
A member may have had an accrued default amount if they did not tell or direct their super fund how they want their super invested.
Both are companies that were formerly within the NAB Group.
MLC Nominees Pty Limited was a registrable superannuation entity licensee and trustee of The Universal Super Scheme (TUSS) until 1 July 2016. Originally, MLC MasterKey Business Super and MLC MasterKey Personal Super were products within TUSS.
NULIS Nominees (Australia) Limited has been a registrable superannuation entity licensee since 1 March 2006 and the trustee of the MLC Super Fund since 9 May 2016.
On 1 July 2016, MLC Nominees Pty Limited transferred the assets of members of TUSS (including MasterKey members who held accrued default amounts) to the MLC Super Fund by way of a Successor Fund Transfer. Following this transfer, the members of TUSS became members of the MLC Super Fund instead of TUSS, with the trustee of the MLC Super Fund being NULIS Nominees (Australia) Limited.
Signing up to the MLC MySuper class action will not expose you to any out of pocket costs. All costs in the proceeding will be borne by Maurice Blackburn unless and until there is a successful outcome. In the event of a successful outcome, any costs payable by Maurice Blackburn will be deducted from, and will not exceed, any compensation that you are entitled to receive. All such costs are required to be considered and approved by the Court.
No funding commission will be payable to a third party litigation funder as there is no third party litigation funder involved in the MLC MySuper class action.
In the event that the Supreme Court of Victoria has power to make a group costs order in relation to these proceedings, the Representative may at a future time apply to the Court for such an order. A group costs order is an order of the Court in which the legal costs payable to the law practice representing the Representative and the class are calculated as a percentage of the amount of any award or settlement and the liability is shared among the Representative and all group members. The percentage is determined by the Court.
MLC MySuper class action news
NAB sued over super rip off
Australia’s leading class action firm, Maurice Blackburn Lawyers, has today filed a class action on behalf of more than 330,000 MasterKey Business Super and Personal Super account holders with the National Australia Bank alleging breaches of super trustee duties, which caused substantial losses to members.
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