ASIC bans cold call life insurance sales

The financial regulator has banned cold call selling of life and consumer credit insurance, drawing “a line in the sand” after CommInsure and others sold policies to those who didn’t want, need or understand them.

The ban, which will take effect from January 13, was announced by the Australian Securities and Investments Commission on Wednesday, less than a week after Commonwealth Bank-owned CommInsure was fined $700,000 for 87 breaches of anti- hawking legislation.

ASIC Commissioner Sean Hughes.Credit:Josh Robenstone

It was the first criminal conviction against a major bank since the financial services royal commission.

ASIC commissioner Sean Hughes said firms had been using sophisticated tactics to pressure people into buying policies.


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