Financial Services Royal Commission

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Financial Services Royal Commission) was established in December 2017 and concluded in February 2019. Also see the Royal Commissions website.

This page contains:

ASIC communications and regulatory reforms (2018-2022)
Summary of ASIC enforcement action (2022)
Related information

ASIC communications and regulatory reforms (2018-2022)

Jump to:

2018
2019
2020
2021
2022

2018

18-269MR Civil penalty action commenced against Dover Financial Advisers and director Terry McMaster

18-291MR Statement from ASIC Chair James Shipton on the Interim Report of the Financial Services Royal Commission

2019

19-020MR Statement from ASIC Chair James Shipton on the Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry

19-035MR ASIC update on implementation of Royal Commission recommendations: see ASIC update on implementation of Royal Commission recommendations (PDF 294 KB)

19-216MR Former NAB branch manager pleads guilty to fraud

19-222MR ASIC sues NAB for dealing with unlicensed home loan introducers: Royal Commission case study

19-244MR ASIC commences court action against Select AFSL over phone sales of life insurance

19-249MR ASIC update on Royal Commission implementation: see ASIC Royal Commission implementation update (PDF 270 KB)

19-297MR ASIC takes civil penalty action against RI Advice and former Melbourne financial adviser, John Doyle: Royal Commission case study

19-357MR ASIC commences proceedings against TAL Life Limited for handling of insurance claim

19-365MR ASIC updates internal governance and accountability frameworks

2020

20-024MR AMP to pay $5.175 million penalty for failing to prevent insurance churn by its financial planners

20-034MR ASIC and APRA welcome law reform on superannuation regulator roles (see Superannuation below)

20-040MR ASIC consults on draft guidance on the new best interests duty for mortgage brokers (see Mortgage brokers below)

20-047MR ASIC update on enforcement and regulatory work

20-052MR Charges laid against former credit representative in relation to breach of ASIC banning order

20-056MR ASIC consults on proposals about advice fee consents and independence disclosure (see Advice fee consents and independence disclosure below)

20-063MR ASIC commences proceedings against CBA over the AgriAdvantage Plus Package – Royal Commission case study

20-064MR ASIC commences proceedings against CBA over the credit services provided to problem gambler – Royal Commission case study

20-065MR ASIC commenced proceedings against Colonial First State over dealings with MySuper accounts

20-076MR ASIC provides information on funeral expenses reform (see Funeral expenses below)

20-086MR Details of changes to ASIC regulatory work and priorities in light of COVID-19

20-091MR ASIC commences proceedings against Youi Pty Ltd for alleged breaches of the duty of utmost good faith

20-109MR ASIC defers commencement of mortgage broker reforms and design and distribution obligations (see Mortgage brokers below)

20-111MR ASIC bans financial advisers

20-129MR CBA to pay $5 million over the AgriAdvantage Plus Package – Royal Commission case study

20-130MR Former financial adviser and Royal Commission witness, Sam Henderson charged with dishonesty and defective disclosure offences

20-131MR ASIC’s Interim Corporate Plan for 2020-21

20-138MR Former credit representative sentenced for breaching ASIC banning order

20-143MR ASIC sues CBA and Colonial First State for payment of banned conflicted remuneration

20-146MR ASIC publishes new regulatory guidance for mortgage brokers (see Mortgage brokers below)

20-179MR ASIC consults on proposed product intervention order for the sale of add-on motor vehicle financial risk products (see Add-on insurance below)

20-180MR Superannuation trustees compensate members wrongly classified as ‘smokers’

20-189MR ASIC commences civil penalty proceedings against StatePlus Super for charging fees for no service

20-190MR ASIC commences civil penalty proceedings against BT Funds Management and Asgard Capital Management for charging fees for no service and misleading statements

20-196MR Royal Commission witness and former financial adviser Sam Henderson pleads guilty to dishonesty and defective disclosure charges

20-211MR NAB superannuation trustee companies to pay $57.5 million penalty for fees for no service breaches

20-217MR ASIC enforcement update January to June 2020

20-227MR ASIC commences proceedings against Allianz Australia Insurance and AWP Australia for alleged misleading sale of travel insurance on Expedia websites

20-233MR Former responsible manager banned from credit activities following ASIC investigation

20-247MR NAB ordered to pay $15 million for dealing with unlicensed home loan Introducers: Royal Commission case study

20-248MR ASIC updates information sheets on new protections under the unfair contract terms laws (see Unfair contract terms below)

20-249MR Royal Commission witness and former financial adviser Sam Henderson sentenced (see also 20-130MR and 20-196MR)

20-252MR Societe Generale Securities Australia Pty Ltd receive $30,000 penalty for breaching client money rules

20-255MR ASIC Annual Report 2019-2020

20-262MR ASIC commences proceedings against ACBF Funeral Plans and Youpla Group concerning funeral expenses insurance

20-263MR CBA ordered to pay $150,000 for credit limit increase provided to problem gambler: Royal Commission case study

20-291MR ASIC consults on reference checking and information sharing protocol (see Reference checking and information sharing below)

20-300MR ASIC releases draft information sheet for insurance claims handling (see Claims handling and settling services below)

20-302MR Youi breached duty of utmost good faith – Royal Commission case study

20-305MR ASIC commences proceedings against CBA for overcharged interest – Royal Commission case study

20-307MR AAT upholds ASIC decision to refuse Allegra a licence

20-308MR ASIC consults on consumer remediation guidance (see Consumer remediation below)

20-309MR Trustees to improve occupational classification practices in insurance in superannuation

20-318MR ASIC releases technical updates to RG 246 (See Conflicted remuneration below)

2021

21-003MR ASIC approves variations to the Banking Code (See Codes of conduct below)

21-025MR CBA liable for overcharged interest – Royal Commission case study

21-029MR Criminal charges laid against Allianz and AWP alleging the making of false statements

21-032MR Former Victorian financial adviser charged with deception

21-042MR Court finds that TAL Life Limited breached its duty of utmost good faith – Royal Commission referral

21-043MR ASIC consults on implementing a deferred sales model for add-on insurance products (see Add-on insurance below)

21-058MR ASIC releases advice fee consent and lack of independence disclosure legislative instruments (see Advice fee consents and independence disclosure below)

21-065MR CBA to pay $7 million court penalty for overcharged interest – Royal Commission case study

21-067MR ASIC warns time is fast running out for insurance claims handling AFS licence applications (see Claims handling and settling services below)

21-074MR ASIC enforcement update July to December 2020

21-075MR ASIC commences proceedings against credit licensee over failure to comply with AFCA determination

21-080MR ASIC consults on draft guidance on breach reporting reforms (see Breach reporting reforms below)

21-102MR Former managing director of responsible entity of Sterling Income Trust banned for four years

21-134MR ASIC releases guidance on ongoing fee arrangements (see Ongoing fee arrangements below)

21-141MR ASIC extends licensing relief to all trustees of registrable superannuation entities for consistent treatment under the law (see Superannuation entities: licensing relief below)

21-169MR ASIC secures $35 million remediation for OnePath Life customers

21-173MR ASIC finalises investigation into AMP Financial Planning ‘fees for no service’ criminal conduct

21-180MR ASIC releases reference checking and information sharing protocol for financial advisers and mortgage brokers (see Reference checking and information sharing below)

21-181MR ASIC consults on draft guidance for the hawking reforms (see Hawking and Advertising below)

21-186MR BT Funds Management and Asgard Capital Management ordered to pay a $3m penalty for charging fees for no service and making misleading statements

21-189MR ASIC releases guidance and customer information requirements to implement the new add-on insurance deferred sales model (see Add-on insurance below)

21-194MR ASIC sues General Commercial (Urban Commercial) and Eden Capital (Southside Lending) for failure to cooperate with AFCA

21-196MR Court finds RI Advice liable for failing to supervise financial adviser following ASIC investigation

21-213MR ASIC’s approach to new laws reforming financial services sector

21-217MR CBA to publish misconduct notices for overcharging interest

21-235MR ASIC publishes guidance on breach reporting (see Breach reporting reforms below)

21-237MR Colonial First State liable for misleading superannuation members

21-251MR ASIC brings criminal charges against CBA for mis-selling consumer credit insurance

21-257MR ASIC publishes guidance on hawking reforms (see Hawking and Advertising below)

21-279MR ASIC sues former Freedom Insurance director and consultant over insurance sales incentive programs

21-340MR ASIC sues ANZ for misleading customers and failing to provide promised benefits – final Royal Commission investigation

21-363MR Operation of the Financial Services and Credit Panel

21-368MR ASIC issues information for tax financial advisers under Better Advice Act (see Tax advisers below)

2022

22-012MR RI Advice to pay $6 million penalty, John Doyle to pay $80,000 penalty: Royal Commission case study

22-023MR Aware Financial Services Australia fined $20 million for charging fees for no service: Royal Commission case study

22-033MR ASIC consults on Financial Services and Credit Panel regulatory guidance (see Financial Services and Credit Panel below)

22-023MR Aware Financial Services Australia fined $20 million for charging fees for no service: Royal Commission case study

22-139MR ASIC releases information sheet on warnings and reprimands given to financial advisers (see Warnings and reprimands below)

22-176MR Court finds Select AFSL and its agents acted unconscionably when selling insurance products: Royal Commission case study

Jump to:

Add-on insurance
Advice fee consents and independence disclosure
Breach reporting reforms
Claims handling and settling services
Codes of conduct
Conflicted remuneration
Financial Services and Credit Panel
Funeral expenses
Hawking and Advertising
Mortgage brokers
Ongoing fee arrangements
Reference checking and information sharing
Superannuation
Tax advisers
Unfair contract terms
Warnings and reprimands

Add-on insurance

21-189MR ASIC releases guidance and customer information requirements to implement the new add-on insurance deferred sales model

RG 275 The deferred sales model for add-on insurance

ASIC (Information under the Deferred Sales Model for Add-On Insurance) Instrument 2021/632

REP 695 Response to submissions on CP 339 on the deferred sales model for add-on insurance (see 21-043MR)

Related information

20-179MR ASIC consults on proposed product intervention order for the sale of add-on motor vehicle financial risk products

Summary of changes and feedback questions (PDF 132 KB)

Draft ASIC Corporations (Product Intervention – Add-on Motor Vehicle Financial Risk Products) Instrument 2020 (PDF 373 KB)

Draft instrument showing the changes made since consultation in October 2019 (PDF 346 KB)

CP 324 Product intervention: The sale of add-on financial products through caryard intermediaries (October 2019)

CP 294 The sale of add-on insurance and warranties through caryard intermediaries (October 2017)

REP 492 A market that is failing consumers: The sale of add-on insurance through car dealers (September 2016)

REP 471 The sale of life insurance through car dealers: Taking consumers for a ride (February 2016)

Advice fee consents and independence disclosure

21-058MR ASIC releases advice fee consent and lack of independence disclosure legislative instruments

ASIC Corporations (Consent to Deductions—Ongoing Fee Arrangements) Instrument 2021/124

ASIC Corporations (Disclosure of Lack of Independence) Instrument 2021/125

ASIC Superannuation (Consent to Pass on Costs of Providing Advice) Instrument 2021/126

Sample form (ongoing fees - PDF 137 KB), Sample form (non-ongoing fees - PDF 88 KB) and FAQs

REP 687 Response to submissions on CP 329 on advice fee consents and independence disclosure (see 20-056MR)

Breach reporting reforms

21-235MR ASIC publishes guidance on breach reporting

RG 78 Breach reporting by AFS licensees and credit licensees (commences 1 October 2021)

INFO 259 Complying with the notify, investigate and remediate obligations

REP 698 Response to submissions on CP 340 Breach reporting and related obligation (see 21-080MR)

ASIC Corporations and Credit (Breach Reporting—Reportable Situations) Instrument 2021/716

Claims handling and settling services

21-067MR ASIC warns time is fast running out for insurance claims handling AFS licence applications

INFO 253Claims handling and settling: How to comply with your AFS licence obligations

Background

20-300MR ASIC releases draft information sheet for insurance claims handling

Draft INFO 000 Claims handling and settling (PDF 644 KB)

Draft C12 proof on insurance claims handling and settling (PDF 90 KB)

Codes of conduct

21-003MR ASIC approves variations to the Banking Code

ASIC Corporations (Approval of Variation of March 2020 Banking Code of Practice) Instrument 2021/11

Conflicted remuneration

20-318MR ASIC releases technical updates to RG 246

RG 246 Conflicted and other banned remuneration

Consumer remediation

20-308MR ASIC consults on consumer remediation guidance

CP 335 Consumer Remediation: Update to RG 256

Financial Services and Credit Panel

RG 263 Financial Services and Credit Panel (see 22-206MR)

INFO 273 FSCP decision: Your rights (see 22-206MR)

Background

REP 734 Response to submissions on CP 359 Update to RG 263 Financial Services and Credit Panel (see 22-033MR)

Funeral expenses

20-076MR ASIC provides information on funeral expenses reform

INFO 243 Licensing requirements for providers of funeral expenses facilities

Hawking and Advertising

21-257MR ASIC publishes guidance on hawking reforms

RG 38 The hawking prohibition

REP 701 Response to submissions on CP 346 The hawking prohibition: Update to RG 38 (see 21-181MR)

ASIC Corporations (Amendment and Repeal) Instrument 2021/799

Mortgage brokers

20-109MR ASIC defers commencement of mortgage broker reforms and design and distribution obligations

20-146MR ASIC publishes new regulatory guidance for mortgage brokers

ASIC Credit (Deferral of Mortgage Broker Obligations) Instrument 2020/487

RG 273 Mortgage brokers: Best interests duty

REP 662 Response to submissions on CP 327 on mortgage brokers and the best interests duty (see 20-040MR)

Ongoing fee arrangements

21-134MR ASIC releases guidance on ongoing fee arrangements

INFO 256 FAQs: Ongoing fee arrangements

RG 175 Licensing: Financial product advisers—Conduct and disclosure

ASIC Corporations (Disclosure of Lack of Independence) Instrument 2021/125

CP 332 Promoting access to affordable advice for consumers (see Response to ASIC Consultation Paper 332 (Infographic PDF 88 KB) and news article

Related information

RG 182 Dollar disclosure (reissued 29/6/2021)

RG 255 Providing digital financial product advice to retail clients (reissued 29/6/2021)

INFO 228 Limited AFS licensees: Advice conduct and disclosure obligations (reissued 29/6/2021)

Reference checking and information sharing

21-180MR ASIC releases reference checking and information sharing protocol for financial advisers and mortgage brokers

ASIC Corporations and Credit (Reference Checking and Information Sharing Protocol) Instrument 2021/429

INFO 257 ASIC reference checking and information sharing protocol

Example template reference request: Reference for a mortgage broker (PDF 125KB)

Example template reference request: Reference for a financial adviser (PDF 389KB)

REP 694 Response to submissions on CP 333 Implementing the Royal Commission recommendations: Reference checking and information sharing (see 20-291MR)

Related information

REP 694 Response to submissions on CP 333

RG 104 AFS licensing: Meeting the general obligations

RG 205 Credit licensing: General conduct obligations

INFO 126 Credit representatives

INFO 134 Complying with your obligations if both credit licensee and AFS licensee

INFO 229 Limited AFS licensees: Complying with your licensing obligations

Superannuation

20-034MR ASIC and APRA welcome law reform on superannuation regulator roles

21-141MR ASIC extends licensing relief to all trustees of registrable superannuation entities for consistent treatment under the law

ASIC Corporations (Superannuation and Schemes: Underlying Investments) Instrument 2016/378

Tax advisers

21-368MR ASIC issues information for tax financial advisers under Better Advice Act

INFO 268 FAQs: Regulation and registration of relevant providers of tax (financial) advice services

Related information

Home > Regulatory resources > Financial services > Financial advisers providing tax advice

Unfair contract terms

20-248MR ASIC updates information sheets on new protections under the unfair contract terms laws

INFO 210 Unfair contract term protections for consumers

INFO 211 Unfair contract term protections for small businesses

Warnings and reprimands

22-139MR ASIC releases information sheet on warnings and reprimands given to financial advisers

INFO 270 Warnings and reprimands

Summary of ASIC enforcement action (2022)

The Interim Report was published in September 2018, and the Final Report was published in February 2019. Commissioner the Honourable Kenneth Hayne AC QC made 13 referrals to ASIC for investigation. In addition to these referrals, the Royal Commission examined additional case studies, 32 of which also led to ASIC investigation.

ASIC’s investigations reinforce that financial services institutions must:

Always put their customers first
Fulfil any promises made to their customers
Ensure all consumers are treated fairly
Ensure that they do not take advantage of vulnerable consumers
Put in place the correct and legal compliance processes to monitor their activities, and
Maintain the appropriate governance, oversight, and systems over those compliance processes.

ASIC’s work throughout this broad slate of matters reinforces our commitment to investigate where there are failures in the activities of our regulated entities. Based on what our investigations show, ASIC will continue to seek court outcomes including civil penalties and criminal prosecutions.

This section summarises the outcomes of the ASIC investigations of the Royal Commission matters as at 7 December 2023. This page was created on 9 December 2021 when the last civil proceeding was filed.

Referrals	Number
Total referrals	13
Civil cases filed from referrals	6
Criminal cases prosecuted by the Commonwealth Director of Public Prosecutions from referrals	2
Referrals investigated that concluded with no further action	5
Number of matters completed	7
Combined total of civil penalties so far	$79M
Combined total of criminal penalties so far	$1.71M
Number of matters still before the Federal Court or under prosecution by the Commonwealth Director of Public Prosecutions	1

Case studies	Number
Total case studies investigated	32
Civil cases filed from case studies	12
Criminal cases prosecuted by the Commonwealth Director of Public Prosecutions from case studies	4
Case studies investigated that concluded with no further action	16
Number of matters completed	14
Combined total of civil penalties so far	$97.47M
Number of matters still before the Federal Court or under prosecution by the Commonwealth Director of Public Prosecutions	2

Since 2019, ASIC has published regular updates on our actions to implement Royal Commission recommendations and reforms in our Annual Reports. ASIC has also published half-yearly Enforcement Updates that report on our major enforcement milestones.

Fees for no service, a key focus of the Royal Commission, is a systemic issue that resulted in significant financial loss for consumers and billions of dollars in remediation by the institutions involved. ASIC issued a media release in 2015 noting multiple investigations against the failure by six of Australia’s largest financial institutions to deliver ongoing financial advice services to customers despite charging fees for them.

ASIC had investigated and commenced our first case against the NAB superannuation companies before the Royal Commission handed down its Final Report.

Matter	Action against	Summary	Status	Outcomes
1	NAB superannuation companies: NULIS Nominees (Australia) Limited and MLC Nominees Pty Ltd (18-259MR)	ASIC alleged that two entities in NAB’s wealth management division, NULIS and MLC Nominees, had made false and misleading representations to superannuation members about their entitlement to charge plan service fees and members’ obligations to pay the fees. ASIC also alleged that MLC Nominees and NULIS failed to ensure that their financial services were provided efficiently, honestly, and fairly.	Completed	20-211MR NAB superannuation trustee companies to pay $57.5 million penalty for fees for no service breaches
2	Aware Financial Services Australia Limited (previously known as State Super Financial Services Australia Limited) (20-189MR)	ASIC has commenced civil penalty proceedings in the Federal Court against Aware for charging at least 36,592 members fees for financial advice that Aware promised it would provide but did not provide.	Completed	22-023MR Aware Financial Services Australia fined $20 million for charging fees for no service: Royal Commission case study
3	BT Funds Management and Asgard Capital Management (part of the Westpac Group) (20-190MR)	ASIC alleged that Asgard Capital Management Limited charged adviser fees to 404 customers for financial advice that was not provided and also that Asgard and BT Funds Management Limited made misleading representations in half-yearly or annual account statements regarding the charging of the adviser fees.	Completed	21-186MR BT Funds Management and Asgard Capital Management ordered to pay a $3m penalty for charging fees for no service and making misleading statements
4	Avanteos Investments Limited (formerly a subsidiary of CBA) (21-337MR)	Avanteos has pleaded guilty to 18 criminal charges relating to failures to update defective disclosure statements and continuing to charge fees to deceased superannuation members. At the time of the offending, Avanteos was a subsidiary of the Commonwealth Bank of Australia. As a result of the offending, 499 deceased members with funds in these superannuation products were charged almost $700,000 in fees by Avanteos when it was not entitled to do so. Avanteos has remediated all affected customers.	Sentenced	22-143MR Avanteos Investments penalised $1.7 million for defective disclosure statements

Additionally, ASIC finalised an investigation into the alleged fees-for-no-service conduct by AMP Financial Planning Pty Limited arising from its Buyer of Last Resort Policy. This conduct was also the subject of inquiry and evidence at the Financial Services Royal Commission (21-173MR).

The law imposes important obligations on financial advisers and advice licensees to protect the interests of consumers, including that the advice they receive meets their needs and objectives and is provided by advisers acting in their best interests. However, the Royal Commission highlighted examples of serious non-compliance by advisers, which resulted in poor outcomes for consumers.

ASIC had investigated and commenced our first case against Dover Financial Advisers and Mr McMaster before the Royal Commission handed down its Final Report.

Matter	Action against	Summary	Status	Outcomes
1	Dover Financial Advisers and its sole director Terry McMaster (18-269MR)	ASIC alleged that Dover misled and deceived clients from September 2015, when they commenced using their 'Client Protection Policy' (Protection Policy), to March 2018 when Dover withdrew the Protection Policy in response to ASIC’s concerns ASIC further alleged that Mr McMaster was knowingly concerned in that misconduct, as he was Dover’s sole director, the Key Person named on Dover’s Australian financial services licence and a responsible manager during the relevant period.	Completed	21-040MR Dover Financial Advisers to pay $1.2 million penalty and its sole director to pay $240,000 penalty for false or misleading conduct
2	RI Advice Group Pty Ltd and a former financial adviser, John Doyle (RI Advice was previously an ANZ financial advice business) (19-297MR)	ASIC alleged that RI Advice failed to take reasonable steps to ensure that Mr Doyle provided appropriate advice, acted in clients’ best interests, and put his clients’ interests ahead of his own, as required by law. Mr Doyle was an authorised representative of RI Advice between May 2013 and June 2016. ASIC also took action against Mr Doyle, alleging that he gave inappropriate “cookie cutter” advice to retail clients to invest in complex structured financial products without taking into account their financial goals or risk tolerance. The impacted clients were, in some cases, preparing for retirement. ASIC alleges that Mr Doyle received upfront and ongoing commissions for each of his clients’ investments in the structured products. ASIC alleged RI Advice knew, or should have known, that there was substantial risk Mr Doyle was not complying with his obligations under the law and was repeatedly recommending structured products to his clients, bypassing compliance processes. ASIC further alleged RI Advice did not take reasonable steps in response.	Completed	22-012MR RI Advice to pay $6 million penalty, John Doyle to pay $80,000 penalty: Royal Commission case study
3	Former financial adviser and Royal Commission witness, Sam Henderson (20-130MR)	Following an ASIC investigation, former Sydney financial adviser Sam Maxwell Henderson was criminally charged with three counts of dishonest conduct and two counts of giving a disclosure document knowing it to be defective. The charges related to alleged false representations made by Mr Henderson that he had a Master of Commerce. The matter was prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC.	Sentenced	20-249MR Royal Commission witness and former financial adviser Sam Henderson sentenced
4	Former financial adviser, Ahmed Saad (21-032MR)	Mr Ahmed Saad, of Glenroy, Victoria, was criminally charged with dishonestly obtaining a financial advantage by deception for another and a further charge of attempting to obtain a financial advantage by deception for another. The matter was prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC.	Sentenced	21-314MR Former Victorian financial adviser sentenced to jail for obtaining financial advantage by deception

ASIC took action in cases where relevant practices within the insurance industry were delivering poor outcomes for consumers. ASIC has also addressed conduct where we saw customers not being treated fairly in claims handling. The community expects their insurer to be there when something does go wrong, to be treated fairly and with dignity and respect.

Matter	Action against	Summary	Status	Outcomes
1	Select AFSL Pty Ltd, BlueInc Services Pty Ltd, Insurance Marketing Services Pty Ltd and director Russell Howden (19-244MR)	ASIC alleged that Select, BlueInc, Insurance Marketing Services and director Russell Howden breached the law during telephone sales of life and accidental injury insurance issued by St Andrew’s Life Insurance Pty Ltd under the brand names ‘Let’s Insure’ and ‘FlexiSure’ between 1 February 2015 to 19 March 2018. The allegations include: unconscionable conduct when selling insurance and/or taking payment details over the phone, and when consumers attempted to cancel their insurance policies; undue harassment; coercion; and/or making false and/or misleading representations.	Completed	23-182MR Select AFSL, related companies and managing director penalised a combined $13.6 million
2	TAL Life Limited (19-357MR)	ASIC alleged that TAL Life breached the ASIC Act, the Corporations Act, and the Insurance Contracts Act, when handling a claim made under an income protection policy. The consumer (whose identity was the subject of a non-publication order during the Financial Services Royal Commission) first made a claim under her income protection policy in January 2014 after she was diagnosed with a medical condition. After obtaining the consumer’s medical history, TAL sent a letter confirming that her policy would be avoided on the basis that she had failed to disclose some unrelated prior medical history. In that letter, TAL asserted that she had breached her duty of good faith under s13 of the Insurance Contracts Act.	Completed	21-042MR Court finds that TAL Life Limited breached its duty of utmost good faith – Royal Commission referral
3	Youi Pty Ltd (20-091MR)	ASIC alleged that Youi breached the Insurance Contracts Act, in relation to Youi’s duty of utmost good faith in handling a building and contents insurance claim made by a policyholder. The policyholder first made an insurance claim in January 2017 following a severe hailstorm in their hometown of Broken Hill in November 2016. ASIC alleged that Youi failed to meet the standard imposed by the duty in handling the claim as it took nearly two years to settle, with the repairs to the home finally being completed in November 2018.	Completed	20-302MR Youi breached duty of utmost good faith – Royal Commission case study
4	Allianz Australia Insurance Ltd and AWP Australia Pty Ltd (20-227MR)	ASIC alleged that Allianz and its related-party AWP sold travel insurance in a misleading and deceptive manner, while sold through three websites run by Expedia Inc.	Completed	21-234MR Allianz Australia Insurance and AWP Australia ordered to pay penalties of $1.5 million for misleading sale of travel insurance on Expedia websites
5	ACBF Funeral Plans and Youpla Group (20-262MR)	ASIC alleges that between 1 January 2015 and 30 November 2018: ACBF Funeral Plans engaged in misleading and deceptive conduct and made false and misleading representations, in offering, promoting, and selling a funeral expenses insurance policy; and Youpla Group was knowingly concerned in, or party to, the contravening conduct. ASIC claims that implied representations made by ACBF in marketing material and point of sale documentation were false.	ASIC appealing part of decision	23-244MR ACBF Funeral Plans penalised $1.2 million by Federal Court 23-267MR ASIC appeals Federal Court findings relating to representations made by ACBF Funeral Plans
6	Allianz Australia Insurance Ltd and AWP Australia Pty Ltd (21-029MR)	Allianz has been charged with seven counts, and AWP with one count, of making false or misleading statements regarding the sale of Allianz domestic and international travel insurance products. ASIC alleges that between 2016 and 2018, Allianz and AWP published information online, including on Allianz’s domestic, basic, and comprehensive travel insurance web pages, that misrepresented the characteristics or level of coverage of travel insurance on sale to consumers. This matter is being prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC.	Awaiting sentencing	22-144MR Allianz and AWP plead guilty to charges for making false statements about travel insurance.
7	Commonwealth Bank of Australia (21-251MR & 22-369MR)	Criminal proceedings against CBA have been dismissed due to the underlying criminal charges being statute barred. CBA had previously pleaded guilty to 30 criminal charges for the mis-selling of consumer credit insurance. The conduct occurred between 2011 and 2015 and proceedings were filed in 2021. A separate court found that proceedings for these offences needed to commence within 3 years of the offence, rendering the charges against CBA invalid.	Proceedings dismissed	22-369MR Criminal proceedings against CBA dismissed due to limitation period
8	Former Freedom Insurance director Keith Cohen and consultant Robert Oayda (21-279MR)	ASIC has commenced civil penalty proceedings in the Federal Court against two individuals in relation to sales incentive programs offered by Freedom Insurance Pty Ltd (in liquidation). The proceedings allege Mr Cohen, the former Managing Director of Freedom, and Mr Oayda, a former Quality Control manager, were involved in breaches of conflicted remuneration and other laws. ASIC alleges that both Mr Cohen and Mr Oayda were involved in decisions that saw sales agents qualify for overseas holidays if they reached certain sales targets and a Vespa scooter if they made the most sales. ASIC is concerned that these incentives influenced the sales agents’ conduct and made driving the sale their focus, rather than customer needs.	Judgment Reserved	This matter is still before the Federal Court.

One of the key objectives of the National Credit Act and its licensing regime is consumer protection, and this is a key priority for ASIC when enforcing national consumer credit laws. The conduct that was the subject of ASIC action, ranged from individual bankers involved in submitting false applications for loans, dealing with and remunerating unlicenced people in loan applications and extending credit to a customer who was known to have gambling - related debts.

Matter	Action against	Summary	Status	Outcomes
1	Former National Australia Bank branch manager, Mathew Alwan, (19-216MR)	On 20 August 2019, former NAB branch manager, Mathew Alwan, pleaded guilty in the Local Court of NSW to one count of ‘intention to defraud by false or misleading statement’, an offence under the NSW Crimes Act. An ASIC investigation found that between 23 October 2013 and 19 September 2015, Mr Alwan dishonestly made false and misleading statements to NAB in relation to 24 home loan applications. This investigation began and led to permanent bannings before the Royal Commission Final Report was handed down.	Completed	19-315MR Former NAB branch manager sentenced for making false and misleading statements to NAB
2	National Australia Bank (19-222MR)	ASIC brought this proceeding against NAB for misconduct arising out of failures with NAB’s Introducer Program. ASIC alleged that between 3 September 2013 and 29 July 2016, NAB accepted information and documents in support of consumer loan applications from third party introducers who were not licensed to engage in credit activity. As a result, ASIC alleges NAB breached the prohibition against conducting business with parties engaging in credit activity without an Australian credit licence. ASIC also alleged that NAB breached its obligations requiring it to engage in credit activities efficiently, honestly, and fairly and to comply with the law.	Completed	20-247MR NAB ordered to pay $15 million for dealing with unlicensed home loan Introducers: Royal Commission case study
3	Commonwealth Bank of Australia (20-064MR)	ASIC alleged that CBA failed to take account of a notification by a customer (Mr Harris) that he was a problem gambler and further failed to take reasonable steps to verify his financial situation before offering and approving a credit card limit increase.	Completed	20-263MR CBA ordered to pay $150,000 for credit limit increase provided to problem gambler: Royal Commission case study

Matter

Action against

Summary

Status

Outcomes

Former National Australia Bank branch manager, Mathew Alwan,
(19-216MR)

On 20 August 2019, former NAB branch manager, Mathew Alwan, pleaded guilty in the Local Court of NSW to one count of ‘intention to defraud by false or misleading statement’, an offence under the NSW Crimes Act.

An ASIC investigation found that between 23 October 2013 and 19 September 2015, Mr Alwan dishonestly made false and misleading statements to NAB in relation to 24 home loan applications.

This investigation began and led to permanent bannings before the Royal Commission Final Report was handed down.

Completed

19-315MR Former NAB branch manager sentenced for making false and misleading statements to NAB

National Australia Bank
(19-222MR)

ASIC brought this proceeding against NAB for misconduct arising out of failures with NAB’s Introducer Program.

ASIC alleged that between 3 September 2013 and 29 July 2016, NAB accepted information and documents in support of consumer loan applications from third party introducers who were not licensed to engage in credit activity.

As a result, ASIC alleges NAB breached the prohibition against conducting business with parties engaging in credit activity without an Australian credit licence. ASIC also alleged that NAB breached its obligations requiring it to engage in credit activities efficiently, honestly, and fairly and to comply with the law.

Completed

20-247MR NAB ordered to pay $15 million for dealing with unlicensed home loan Introducers: Royal Commission case study

Commonwealth Bank of Australia
(20-064MR)

ASIC alleged that CBA failed to take account of a notification by a customer (Mr Harris) that he was a problem gambler and further failed to take reasonable steps to verify his financial situation before offering and approving a credit card limit increase.

Completed

20-263MR CBA ordered to pay $150,000 for credit limit increase provided to problem gambler: Royal Commission case study

Financial services licenced entities have an obligation to implement, maintain and continue to invest in appropriate systems, governance, and put controls in place to ensure they deliver on promises made to their customers. A number of proceedings were issued for long standing and undetected failures in systems which caused significant financial loss to consumers.

Matter	Action against	Summary	Status	Outcomes
1	Commonwealth Bank of Australia (20-063MR)	ASIC alleged that CBA harmed customers by not providing certain benefits to customers and, as a result, customers were overcharged fees and interest on loans and fees, and underpaid interest on savings. ASIC also alleged that CBA also overcharged fees to certain customers. These harms derived from failures with their AgriAdvantage Plus Package. From May 2005 to December 2015, CBA sold customers the AgriAdvantage Plus Package, which entitled customers, in exchange for the payment of package fees, to benefits in the form of fee waivers and interest rate discounts, and bonus interest on savings, on 22 CBA products. ASIC alleged that the causes of CBA's failures included the highly manual nature of CBA's systems by which the AgriAdvantage Plus Package benefits were applied, as well as, CBA having no systems or processes in place to check whether customers were receiving benefits.	Completed	20-129MR CBA to pay $5 million over the AgriAdvantage Plus Package – Royal Commission case study
2	Commonwealth Bank of Australia (20-305MR)	ASIC alleged that CBA charged a rate of interest on business overdraft accounts substantially higher than what its customers were advised. The total overcharged interest exceeded $2.9 million. ASIC alleged that CBA attempted to manually fix the overcharging error after a complaint was made to the bank in 2013. The manual fixes were unsuccessful, and customers continued to be overcharged. ASIC alleges that from 1 December 2014 to 31 March 2018, being within the six-year limitation period, CBA engaged in conduct that contravened financial services laws.	Completed	21-065MR CBA to pay $7 million court penalty for overcharged interest – Royal Commission case study
3	Australia and New Zealand Banking Group Ltd (21-340MR & 22-290MR)	ASIC alleged that ANZ misled customers and failed to provide benefits promised to customers who held offset transaction accounts or a ‘Breakfree’ package. ASIC alleges that between the mid-1990s and September 2021, ANZ failed to provide certain benefits, outlined in their terms and conditions, to approximately 580,447 customers which has resulted in ANZ having to remediate nearly $200 million to impacted customers.	Completed	22-290MR ANZ penalised $25 million for misleading customers and failing to provide promised account benefits

Matter

Action against

Summary

Status

Outcomes

Commonwealth Bank of Australia
(20-063MR)

ASIC alleged that CBA harmed customers by not providing certain benefits to customers and, as a result, customers were overcharged fees and interest on loans and fees, and underpaid interest on savings. ASIC also alleged that CBA also overcharged fees to certain customers.

These harms derived from failures with their AgriAdvantage Plus Package.

From May 2005 to December 2015, CBA sold customers the AgriAdvantage Plus Package, which entitled customers, in exchange for the payment of package fees, to benefits in the form of fee waivers and interest rate discounts, and bonus interest on savings, on 22 CBA products.

ASIC alleged that the causes of CBA's failures included the highly manual nature of CBA's systems by which the AgriAdvantage Plus Package benefits were applied, as well as, CBA having no systems or processes in place to check whether customers were receiving benefits.

Completed

20-129MR CBA to pay $5 million over the AgriAdvantage Plus Package – Royal Commission case study

Commonwealth Bank of Australia
(20-305MR)

ASIC alleged that CBA charged a rate of interest on business overdraft accounts substantially higher than what its customers were advised. The total overcharged interest exceeded $2.9 million.

ASIC alleged that CBA attempted to manually fix the overcharging error after a complaint was made to the bank in 2013. The manual fixes were unsuccessful, and customers continued to be overcharged. ASIC alleges that from 1 December 2014 to 31 March 2018, being within the six-year limitation period, CBA engaged in conduct that contravened financial services laws.

Completed

21-065MR CBA to pay $7 million court penalty for overcharged interest – Royal Commission case study

Australia and New Zealand Banking Group Ltd
(21-340MR & 22-290MR)

ASIC alleged that ANZ misled customers and failed to provide benefits promised to customers who held offset transaction accounts or a ‘Breakfree’ package.

ASIC alleges that between the mid-1990s and September 2021, ANZ failed to provide certain benefits, outlined in their terms and conditions, to approximately 580,447 customers which has resulted in ANZ having to remediate nearly $200 million to impacted customers.

Completed

22-290MR ANZ penalised $25 million for misleading customers and failing to provide promised account benefits

Superannuation is important for the future financial security of Australians, and ASIC seeks to ensure that regulated superannuation funds operate in a way that is fair for members and promotes confidence in superannuation generally.

Following the Royal Commission, ASIC’s role has expanded to include the regulation of superannuation trustee conduct. To that end, ASIC is committed to ensuring trustees deliver on their commitments to members and treat them fairly, including the obligation to ensure that members are provided the correct information to allow them to make informed decisions about their retirement savings. ASIC aims to deter any future misconduct and prevent consumer harm by taking appropriate action against wrongdoing.

Matter	Action against	Summary	Status	Outcomes
1	Colonial First State Investments Limited its own capacity, and as the trustee for the Colonial First State FirstChoice Superannuation Trust (20-065MR)	ASIC alleged that, between March 2014 and August 2016, Colonial First State communicated with members of the FirstChoice Fund in a misleading or deceptive manner regarding the provision of investment directions to stay within the FirstChoice Fund rather than transitioning to Colonial First State’s MySuper product. ASIC's case focused on template letters sent to members, as well as 46 telephone calls made in accordance with scripts. ASIC also alleges that Colonial First State failed to provide a "general advice warning" during the telephone calls.	Completed	21-276MR Colonial First State to pay $20 million penalty for misleading superannuation members
2	Commonwealth Bank of Australia and its subsidiary, Colonial First State Investments Limited (20-143MR & 22-293MR)	ASIC alleges that more than $22 million in conflicted remuneration was paid by CFSIL to CBA for the distribution of Essential Super, a superannuation product issued by CFSIL. CBA distributed the Essential Super product using its branch and digital channels. Approximately 390,000 individuals became members of the Commonwealth Essential Super fund under the arrangements.	Appeal Dismissed	23-222MR Full Federal Court dismisses ASIC appeal but clarifies conflicted remuneration provisions

Related information

See the Royal Commissions website for more information.
- Royal Commission Interim Report (September 2018)
- Royal Commission Final Report (February 2019)
- Summary of ASIC enforcement action (May 2022)

Financial Services Royal Commission

ASIC communications and regulatory reforms (2018-2022)

Media releases

2018

2019

2020

2021

2022

Speeches, articles and news items

2018

2019

2020

2021

Regulatory reforms

Add-on insurance

Related information

Advice fee consents and independence disclosure

Breach reporting reforms

Claims handling and settling services

Background

Codes of conduct

Conflicted remuneration

Consumer remediation

Financial Services and Credit Panel

Background

Funeral expenses

Hawking and Advertising

Mortgage brokers

Ongoing fee arrangements

Related information

Reference checking and information sharing

Related information

Superannuation

Tax advisers

Related information

Unfair contract terms

Warnings and reprimands

Summary of ASIC enforcement action (2022)

Referrals made to ASIC for investigation by the Royal Commission

Case studies investigated by ASIC following the Royal Commission

Fees for No Service cases

Poor financial advice cases

Addressing harm in insurance

Misconduct in credit and banking

System and process failures causing financial harm to customers

Superannuation

Related information