The corporate regulator announced this morning that CommInsure has been charged with anti-hawking offenses and they could pay almost $ 2million in penalties.
The charges relate to 87 different occasions between the period of October and December in 2014 were through an agent Ageon Insights Australia offered to sell insurance through non-compliant unsolicited phone calls.
The regulator said in an official statement this morning ASIC 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.”
The recommendation 4.1 the Royal Commission final report highlighted called for no hawking in insurance.
The Royal Commission highlights the exchange between with Chief Actuary and Risk Officer Gregory Martin who was asked whether it was possible to sell life insurance in outbound calls in a way that was financially viable and legally compliant to which he responded:
"In retrospect I find it difficult to understand how you can reconcile those things … it would be possible to make it legally compliant. My difficulty personally with it is I just don’t understand how a customer in a phone call that lasts 20 minutes can come to a view of … understanding exactly what they’ve bought in a fairly complex sort of area of financial services."
The matter will be going Downing Centre Local Court on 19 November.
The NSW Police have charged a software contractor with 15 offenses while investigating the eth data breach of an ‘Australian-based company’ which compromised 170 000 records.
“Cybercrime presents a unique challenge for law enforcement, and the only way we will be able to tackle the issues in a collaboration with our industry partners and government,” Cyber Squad Commander Detective Acting Superintendent Gordon Arbinja