The life insurance arm of Commonwealth Bank (ASX: CBA), CommInsure, has been charged with 87 counts of offering to sell insurance products in the course of non-compliant unsolicited phone calls.
The Australian Securities and Investment Commission (ASIC) alleges that CommInsure, wholly owned by CBA, unlawfully sold insurance policies known as Simple Life over the phone through a telemarketing firm Aegon Insights Australia.
It is alleged that CommInsure provided customer contact details to Aegon from CBA's existing customer base.
As such, ASIC alleges that the calls to CBA customers were unsolicited, and thus has charged CommInsure with hawking.
The maximum penalty for each charge is $21,250, meaning CommInsure is potentially liable to pay a fine of $1.85 million.
The matter has been listed for the first mention on 19 November 2019 at the Downing Centre local court in Sydney.
Shares in Commonwealth Bank are down 0.14 per cent to $77.24 per share at 11.09am AEST.
Business News Australia