Brady v NULIS Nominees (Australia) Limited in its capacity as trustee of the MLC Super Fund (No 4) [2024] FCA 1374

FEDERAL COURT OF AUSTRALIA Brady v NULIS Nominees (Australia) Limited in its capacity as trustee of the MLC Super Fund (No 4) [2024] FCA 1374 File number:

Judgment of: MARKOVIC J

Date of judgment: 2 December 2024

Catchwords: SUPERANNUATION – representative proceeding under Part IVA of the Federal Court of Australia Act 1976 (Cth) – fees for no service – where respondent continued to charge fees after successor fund transfer – whether charging of fees was a breach of trust – whether power existed under the trust deed to charge fees – trustee duties – whether trustee breached s 52 of the Superannuation Industry (Supervision) Act 1993 (Cth) – whether fees were conflicted remuneration for the purposes of the Corporations Act 2001 (Cth) – where there was no breach of trust – whether in any case the applicant and sample group member would have been entitled to pre-judgment interest

Corporations Act 2001 (Cth) ss 251A(6), 761A, 761E, 960, 963A, 963B, 963K, 1526, 1528 Federal Court of Australia Act 1976 (Cth) s 51A Legislation: Superannuation Industry (Supervision) Act 1993 (Cth) s 52 Corporations Regulations 2001 (Cth) regs 16, 16A, 16B Superannuation Industry (Supervision) Regulations 1994 (Cth) reg 1.03

Apostolovski v Total Risk Management Pty Ltd (2010) 79 NSWLR 432 Application by Maritime Super Pty Ltd atf Maritime Super [2021] NSWSC 1614 Application by NGS Super Pty Ltd (atf NGS Super) [2021] NSWSC 1694 Application by United Super Pty Ltd atf Construction and Building Unions Superannuation Fund [2021] NSWSC 1679 Aussiegolfa Pty Ltd v Federal Commissioner of Taxation (2018) 264 FCR 587 Australian Executor Trustees (SA) Ltd v Kerr [2021] NSWCA 5; 151 ACSR 204 Australian Prudential Regulation Authority v Kelaher [2019] FCA 1521; (2019) 138 ACSR 459 Australian Securities and Investments Commission v Commonwealth Bank of Australia (2023) 299 FCR 604 Australian Securities and Investments Commission v Diversa Trustees Limited [2023] FCA 1267 Australian Securities and Investments Commission v Drake (No 2) [2016] FCA 1552; (2016) 340 ALR 75; [2016] FCA 1552 Australian Securities and Investments Commission v Hellicar (2012) 247 CLR 345 Australian Securities and Investments Commission v Lewski (2018) 266 CLR 173 Australian Securities Commission v AS Nominees Ltd (1995) 62 FCR 504 AustralianSuper Pty Ltd v McMillan [2021] SASC 147 Bathurst Regional Council v Local Government Financial Services Pty Ltd (No 6) [2013] FCA 144 Breakspear v Ackland [2009] Ch 32 Chick v Grosfield (No 3) [2012] NSWSC 1536 Commonwealth Bank Officers Superannuation Corp Pty Ltd v Beck [2016] NSWCA 218; (2016) 334 ALR 692 Cowan v Scargill [1985] Ch 270 Crowley v Worley Ltd (2022) 293 FCR 438 Edge v Pensions Ombudsman [2000] Ch 602 Edington v Board of Trustees of the State Public Sector Superannuation Scheme [2015] QSC 245 Emu Brewery Mezzanine Ltd (in liq) v Australian Securities and Investments Commission (2006) 32 WAR 204 Finch v Telstra Super Pty Ltd (2010) 242 CLR 254 Cases cited: FSS Trustee Corporation v Eastaugh [2017] VSCA 218 Gibb v Commissioner of Taxation (1966) 118 CLR 628 Grant-Taylor v Babcock & Brown Ltd (in liq) [2015] FCA 149; 322 ALR 723 H K Frost Holdings Pty Ltd (in liq) v Darvall McCutcheon (a firm) [1999] FCA 795 Karger v Paul [1984] VR 161 Manglicmot v Commonwealth Bank Officers Superannuation Corporation Pty Ltd (2011) 282 ALR 167 Manly Council v Byrne [2004] NSWCA 123 Pacific National (ACT) Ltd v Queensland Rail [2006] FCA 91 Plaintiff M47/2012 v Director-General of Security (2012) 251 CLR 1 Rakic v John Lyng Insurance Building Solutions (Vic) Pty Ltd (Trustee) [2016] FCA 430; 259 IR 47 Re Barr Smith [1920] SALR 380 Re Care Super Pty Ltd [2021] VSC 805 Re Cuesuper Pty Ltd [2009] NSWSC 981 Re HEST Australia Ltd (2021) 66 VR 338 Re QSuper Board [2021] QSC 276 Re Queensland Coal and Oil Shale Mining Industry (Superannuation) Ltd [1999] 2 Qd R 524 Resolution Life Australasia Ltd v N.M Superannuation Pty Ltd [2023] NSWCA 138 Tambakeras v UniSuper Limited [2022] NSWSC 1162 Togethr Trustees Pty Ltd v Safai [2023] SASC 90 Trust Company v Banksia [2016] VSCA 324 Vision Super Pty Ltd v Poulter (2006) 154 FCR 185 Wareham v Marsella (2020) 61 VR 262 Youyang Pty Ltd v Minter Ellison Morris Fletcher (2003) 212 CLR 484 JD Heydon, Cross on Evidence (14th Aust ed, LexisNexis Butterworths, 2024) JD Heydon and MJ Leeming, Jacobs' Law of Trusts in Australia (8th ed, LexisNexis Butterworths, 2016) S Donald, "On rights, powers and duties" (2017) 29(4) Australian Superannuation Law Bulletin 59