Market Herald logo


Be the first with the news that moves the market
  • Commonwealth Bank is facing legal action over breaching anti-hawking regulations
  • The Commonwealth Director of Public Prosecutions has launched proceedings against the bank’s life insurance branch CommInsure
  • CommInsure is accused of 87 violations from sales in 2014
  • Hawking laws prohibit unsolicited telephone sales of financial products
  • Commonwealth Bank’s share price is down 0.32 per cent today, currently sitting at $77.09 apiece

Commonwealth Bank is facing legal action from the Commonwealth Director of Public Prosecutions.

The banking giant is accused of breaching anti-hawking regulations on 87 counts.

Proceedings are against Commonwealth’s life insurance branch, CommInsure.

CommInsure is accused of violating anti-hawking regulations between October 7 2014 and December 16 2014 by selling its Simple Life insurance products over the phone.

Under the Corporations Act 2001, unsolicited calls to sell financial products are illegal.

Commonwealth said in a statement to the Australian Securities Exchange today it ceased selling its insurance policies over the phone at the end of 2014.

The life insurance policies were sold through the telemarketing firm Aegon Insights Australia. According to the Australian Securities and Investments Commission, CommInsure provided the telemarketers with customer details from Commonwealth’s database.

Each charge carries a maximum penalty of $21,250.

Commonwealth Bank’s share price is down 0.32 per cent today, currently sitting at $77.09 apiece, as of 11:46 am AEST.

CBA by the numbers
More From The Market Herald
Carsales (ASX:CAR) - Managing Director and CEO, Cameron McIntyre

" (ASX:CAR) raises $842m for Trader Interactive acquisition (ASX:CAR) has raised $842 million from its institutional entitlement offer to help fund its acquisition…
The Market Herald Video

" Pilbara Minerals (ASX:PLS) set to increase production at Pilgangoora

Pilbara Minerals (ASX:PLS) is set to increase spodumene production at its Pilgangoora operation to 680,000 dry…
The Market Herald Video

" Liontown Resources (ASX:LTR) lands offtake agreement with Ford, reaches FID decision

Liontown Resources (ASX:LTR) has executed a binding offtake agreement and funding facility with global automaker, Ford.
The Market Herald Video

" Northern Star Resources (ASX:NST) looks to expand Kalgoorlie Super Pit

Gold miners Northern Star Resources (ASX:NST) flags potential to spend up to $1.4 billion to expand…