Just as Douglas Adams recommends in "The Hitchhiker's Guide to the Galaxy", this is our advice to the headlines, threats and drama coming out of the Royal Commission. While it makes for GREAT HEADLINES, every man and his dog (or class action lawyer) with a barrow to push is busy hopping on the bandwagon.
The latest is an 'announcement' that Slater and Gordon are airing 'a class action against some super funds that might benefit 1 in 3 Australians!'. The problem is that some clients in CASH are not getting the best CASH rate available and the fees on cash are too high. This seems like a 'courageous' call. Many platforms have a choice of over 100 investment options and most funds have several cash offers and term deposits available. However, it would be very unusual for an advised client to be substantially invested in cash.
Then again, Slater and Gordon were themselves subject to a class action by another law firm Maurice Blackburn which was settled last year. Maybe they're trying to fill the coffers again while everyone is in Royal Commission mode?
Even if there WAS a successful settlement against a super fund, it would not impact the members. It would flow back to the parent company (and the shareholders) so it would be AMP or CBA shares that would be impacted.
If any clients are particularly worried and would like to discuss in more detail, we are happy to bring forward your next review.
Otherwise just keep media reports in context and don't let them actually impact on your strategy.