Insignia shares rise as ANZ settles superannuation class action
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More news: Shares in Insignia Financial advanced on the ASX after big four lender ANZ agreed to settle two separate class actions, including one related to the investment of superannuation funds with ANZ when it owned OnePath. It was later sold to IOOF, now Insignia, in 2020.
Insignia shares were up 3.2% to $2.72 by midday AEST, having lifted more than 15% since January.
ANZ to settle superannuation, Esanda class actions
The news: Big four lender ANZ has agreed to settle two separate class actions related to the investment of superannuation funds with ANZ, and its Esanda car loans business.
The numbers: ANZ will contribute $14 million towards the overall $50 million settlement of the superannuation case. It will pay another $85 million for the Esanda class action.
The bank said the settlement sums are covered by existing provisions held on 30 September and are without admission of liability.
The context: The superannuation class action was filed in 2020 on behalf of members of the former OnePath Master Fund and Retirement Portfolio Service and relates to issues regarding interest rates paid on members’ investments and payment of grandfathered commissions to financial advisers.
ANZ sold OnePath to IOOF, now Insignia Financial in 2020.
The Esanda class action related to the use of flex commissions in dealer-arranged Esanda car loans from 1 January, 2011, to 31 March, 2016. ANZ completed the sale of its Esanda Dealer Finance portfolio in 2016.
The sources: ASX announcement, ASX announcement
