Criminal charges pressed against CBA subsidiaryOctober 7 2019 by InsuranceAsia News Staff
CommInsure, a subsidiary of the Commonwealth Bank of Australia, is facing criminal charges for mis-selling life products as the Australian Securities and Investments Commission (ASIC) clamps down on misconduct.
The Commonwealth Bank of Australia (CBA) subsidiary has been charged with 87 counts of offering to sell life policies through phone calls that weren’t compliant with the rules.
The action relates to policies sold through agent telemarketing firm Aegon Insights Australia between October and December 2014. The charges each carry a maximum penalty of A$21,250 which could add up to A$1.8 million (US$1.2 million).
ASIC says the calls to CBA customers were unsolicited and the company did not comply with all of the relevant hawking exceptions in the Corporations Act.
“CBA and CommInsure are considering the matter and CBA does not intend to comment further at this time,” the company has said in a statement to the Australian Securities Exchange.
ASIC commissioner John Price said: “ASIC has advocated over an extended period about the need for penalties in the legislation we administer to be substantial enough to represent a credible deterrent and to meet community expectations as to the seriousness of the misconduct.”
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