Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Borrow

Big 4 bank charged with hawking offences

By Cameron Micallef · October 04 2019
Reading:
egg

Borrow

Big 4 bank charged with hawking offences

By Cameron Micallef
October 04 2019
Reading:
egg
Big 4 bank charged with hawking offences

Big 4 bank charged with hawking offences

author image
By Cameron Micallef · October 04 2019
Reading:
egg
Big 4 bank charged with hawking offences

Australia’s largest bank is set to face charges for breaches of the Corporations Act.

The Colonial Mutual Life Insurance Society, trading as CommInsure, has today been charged by the Commonwealth Director of Public Prosecutions with 87 counts of offering to sell insurance products in the course of non-compliant unsolicited telephone calls.

CommInsure faces a criminal penalty and a maximum fine of $1,848,750 – equating to up to $21,250 for each charge it is found guilty of.

ASIC has alleged that between October and December 2014, CommInsure, through its agent, telemarketing firm Aegon Insights Australia Pty Ltd, unlawfully sold life insurance policies known as Simple Life over the phone. 

CommInsure provided customer contact details to Aegon from CBA’s existing customer database.

Advertisement
Advertisement

In court, the corporate watchdog will allege that the calls to CBA customers were unsolicited, and that CommIssure did not comply with all of the hawking exception in section 992A(3) of the Corporations Act. 

Acknowledging the charges, CBA released a statement to shareholders by way of the sharemarket, stating that “CBA and CommInsure are considering the matter and CBA does not intend to comment further at this time”.

The action follows scrutiny of CommInsure practices during the Hayne royal commission, where it was accused of using outdated medical definitions to ignore heart attack and breast cancer insurance claims

Despite offloading its life insurance arm to AIA group back in in 2017, Commonwealth Bank remains liable for any legal issues under the period in question. 

The matter has been listed for the first mention on 19 November 2019 at the Downing Centre Local Court in Sydney.

Big 4 bank charged with hawking offences
Big 4 bank charged with hawking offences
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article
author image

About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join the nestegg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

LATEST POLL

Are you seeking alternatives to equity and property in the next 12 months?

Yes - 44.4%
No - 55.6%

Total votes: 473
The voting for this poll has ended

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.