In a statement, ASIC alleged that between October and December 2014, CommInsure, through its agent, telemarketing firm Aegon Insights Australia, unlawfully sold life insurance policies known as Simple Life over the phone.
CommInsure then provided customer contact details to Aegon from CBA’s existing customer database, ASIC said.
ASIC also alleged that the calls to CBA customers were unsolicited, and that CommInsure did not comply with all of the hawking exceptions in section 992A(3) of the Corporations Act.
ASIC confirmed the maximum penalty for each of the charges is $21,250.
The matter has been listed for the first mention on 19 November 2019 at the Downing Centre Local Court in Sydney.
The Commonwealth Director of Public Prosecutions is prosecuting the matter.
[quote=Joe Blow]$21,000 per offence that’s about $1.8 million in fines. That’s called a marketing expenses, when you consider they probably sold millions of policies. [/quote][quote=Joe Blow]$21,000 per offence that’s about $1.8 million in fines. That’s called a marketing expenses, when you consider they probably sold millions of policies. [/quote]
Joe, did you not read the story? Wasnt it 87 sales or policies? Quite a unsuccessful marketing result. Now costing much more than the premiums would have. I encourage people to read media information in full
Yes good on you ASIC. Now you can look at Australian Super offering Qantas FF points if you join them – Hawking??? Oh no – they are ASICs default fund. Jut another conflict of interest
Congratulation CCB (Chief Chest Beater). Narev is comfortably leaning back in his leather sofa at SEEK laughing all of the way to the bank.
why don’t you charge the board of cba and the CEO ?
put the executives in charge in jail. watch the about face. if you keep asking them to pay piddly little fines their gross misconduct will continue. it’s not the advisers. you know that, i know that everyone knows that.
grow some. put them in jail. what these boys need is a taste of maximum security. pity we don’t have the calibre of jails or criminals as you would find in the united states.
maximum security will teach them a lesson. maximum security is what they need a taste of.
other than that, they won’t learn. a slap on the wrist and they will just go to the fanciest restaurant and have the finest wagyu steak and wash it down with the finest Shiraz no problem for them as they have not tasted maximum security prison.
when will asic and the government learn, you know they never learn unless they taste maximum security.
the operative word is “taste”
$21,000 per offence that’s about $1.8 million in fines. That’s called a marketing expenses, when you consider they probably sold millions of policies.
The Life Insurers have been complicit in their drive for profit via direct business whilst at the same time telling their IFA market they value the relationship.
This was no more evident than during the LIF negotiations when most of them in association with the FSC did next to nothing to stand up and shout against the ridiculous legislative changes imposed.
They didn’t stand up because they thought they could profit from going direct and cutting out the adviser market.
Well, now they are running around in circles desperately trying to understand where all this will end up with rapidly declining experienced adviser numbers and a significant decline in new business.
Well, they should have thought a lot more about supporting their loyal and trusted advisers when it really mattered rather than shafting them in the name of shareholder driven pressure.
as is standard, no CBA exec will be held accountable for this. just some low level guy will take the fall..
What about OnePath calling clients with policies set up by their Independent Adviser network and selling direct insurance policies without the adviser’s knowledge or consent?
they should have sent an email offering 20,000 Qantas points first, to set up a new super fund as well, then it would have been all fine & dandy.