POWERED BY MOMENTUM MEDIA
CommInsure sentenced and fined $700k for hawking
Colonial Mutual Life Assurance Society, trading as CommInsure, has been convicted of 87 counts of offering to sell insurance products in the course of unlawful, unsolicited telephone calls and has been fined $700,000.
The hawking offence was contrary to the Corporations Act, an announcement by the Australian Securities and Investments Commission (ASIC) said.
The conviction and fine followed CommInsure’s guilty plea to the charges on 19 November. ASIC noted that the sentence took into account CommInsure’s early guilty plea to the charges, which carried a maximum total penalty of $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.
Her Honour Magistrate Atkinson of the Downing Centre Local Court in Sydney said there was a “significant need for deterrence”, and that those who market and sell insurance products “must ensure that they comply with what is important consumer protection legislation”.
ASIC deputy chair, Daniel Crennan, said: “The conviction and sentence today sends a significant message to the financial services industry. The model operated by CommInsure carried risks for consumers due to the unsolicited sale of complex insurance products which consumers may not have needed, wanted or understood”.
Recommended for you
The $135 billion fund has transitioned away from TAL Life Insurance following an “extensive tender process”.
The $80 billion fund is facing legal action over allegedly signing up new members to income protection insurance by default without active member consent.
In a Senate submission, the Financial Services Council has once again called for further clarification that the government will assess the consumer outcomes of group insurance against the enshrined objective of superannuation.
TAL has launched a digital solution TAL Connect for its superannuation fund partners that links super and insurance for members, with Aware Super as its launch partner.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
66.99 3 y p.a(%)
2
Hills International
63.66 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
36.33 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
35.96 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.23 3 y p.a(%)
Add new comment