CommInsure pleaded guilty to the offences and was fined $700,000. The maximum possible penalty was $1,848,750.
If the conduct were to occur under the new penalty regime, effective from March 2019, the maximum penalty would be $10,962,000.
“The conviction and sentence today sends a significant message to the financial services industry,” said ASIC deputy chair Daniel Crennan QC.
“The model operated by CommInsure carried risk for consumers due to the unsolicited sale of complex insurance products which consumers may not have needed, wanted or understood.”
How can you sentence a corporation???
I thought all of the banks had done this at one point in time or another
Why the maximum penalty of around 10 million dollars was not imposed in retrospect?
A different gauge for corporates Vs individuals (small fries)!!!!
just the cost of doing business for Comminsure….cheap marketing….if Dover did it they would get the Max
No doubt just the first of many for the insurance industry
“The conviction and sentence today sends a significant message to the financial services industry,” said ASIC Deputy Chair Daniel Crennan QC.”
No it doesn’t !!! Comminsure fined a poultry sum for them and not a single exec banned from the industry, not a single exec will be out of pocket. It sends the same message as always, that the big end of town are treated differently by ASIC than financial advisers.
So who gets to keep the money from all these fines, the regulators who have failed to properly regulate on their watch? Its certainly not the self funded retirees who have innocently invested in these Australian banks.
$700,000 really? That’s a drop in the bucket. Surely not enough to be a deterrent to other institutions.
Will anyone spend gaol time for this I wonder.
Significant my ar$e. That’s a cup of coffee for them. This industry is a joke.
Is that $1,878 and 70c?
And still no word on which CBA executives will lose their ability to have anything to do with the industry.