Insignia Financial (ASX:IFL), through its subsidiary OnePath Custodians, announced the settlement of a class action lawsuit filed by Slater and Gordon in December 2020.
Alongside Zurich Australia and ANZ Banking Group, OnePath Custodians has collectively agreed to a $50 million settlement with the applicants.
The settlement awaits court approval and comes without any admission of liability or wrongdoing by the involved parties.
The class action addressed historical issues concerning interest rates on members’ investments in certain cash options before January 2020 and the payment of grandfathered commissions to financial advisers before April 2019.
OnePath Custodians will contribute $22 million towards the total settlement.
The amount will be recorded as an expense in the first half of 2025 and excluded from the underlying net profit after tax of Insignia Financial.
Insignia Financial is a wealth manager that operates through four segments: platforms, advice, asset management and corporate.
At the time of reporting, Insignia Financial's share price was $2.65.