CFS flags $100m class action settlement
Colonial First State (CFS) has told financial advisers that it has reached an in-principle $100 million settlement relating to a class action over grandfathered commissions paid on FirstChoice products.
CFS group executive, distribution, Bryce Quirk told advisers that the in-principle settlement had been reached following confidential court-ordered mediation with the applicants agreeing to settle, subject to Court approval.
“In agreeing to resolve the litigation, CFS continues to deny the allegations and makes no admissions of liability or wrongdoing,” his message said.
If the Court approves the settlement, eligible group members will each recover a share of the agreed settlement sum of $100m, after accounting for any deductions which may be approved by the Court, such as legal fees charged by the Applicants’ lawyers and any commission approved by the Court to be paid to the funder of the class action.
CFS expects that a notification of the in-principle settlement will be sent to eligible group members in August 2023.
Mike, can you please find out how much the lawyers got of this?
Oh my! CFS till this day has the same Bank attitude towards external advisers and clients.
and the funny thing is that CFS opened what’s called Third Party Management team that ironically seeks to oversee the processes and controls into other external advisers and licensees as they try to better protect what they call their ‘members’ interests. Ironic isn’t it? We don’t buy this presentation. Maybe it is time to sell the other 45% to the overseas holdings?
I wonder if NAB/MLC have will have a twinge of conscience and do the same without being dragged through the courts?
Couldn’t happen to a better bunch of no good for nothings !!! Treat advisers like crap and then turn there back on them !!! But beware all they will probably attempt a commission reversal on all adviser clients effected to claw back this !!