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)
Media releases
Jump to:
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20-040MR ASIC consults on draft guidance on the new best interests duty for mortgage brokers (see Mortgage brokers below)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
Speeches, articles and news items
Jump to:
2018
ASIC Regulatory Update: Expectations in the current environment? Our perspective on reform and regulatory developments (speech 22/5/2018)
House of Representatives Economics Committee: Opening statement by ASIC Chair, James Shipton - 22 June 2018 (speech 22/6/2018)
How financial services firms can act to meet community expectations through transparency and accountability (speech, 17/7/2018)
Parliamentary Joint Committee on Corporations and Financial Services – Opening statement by ASIC Chair James Shipton, (speech 17/8/2018)
ASIC’s strategic focus and key priorities over the next year: Improving conduct and restoring trust (speech 4/9/2018)
Parliamentary Joint Committee on Corporations and Financial Services – Opening statement by ASIC Chair James Shipton, (speech 19/10/2018)
Senate Economics Legislation Committee: Opening statement by ASIC Chair, James Shipton, (speech 24/10/2018)
Ethics and professionalism post Royal Commission—A regulator's view (speech 1/11/2018)
2019
Senate Economics Legislation Committee: Opening statement by ASIC Chair, James Shipton - 20 February 2019 (speech 20/2/2019)
Keynote address at Group of 100 Dinner (speech 26/2/2019)
The Financial Services Royal Commission and other emerging issues relating to the general insurance industry from an ASIC perspective (speech 27/2/2019)
Emerging lessons from the Financial Services Royal Commission for the regulation of health practitioners (speech 28/2/2019)
ASIC’s approach to enforcement after the Royal Commission (speech 30/8/2019)
2020
ASIC Update to the Members Health Directors' Professional Development Program 2020 (speech 5/2/2020)
ASIC examines advice in super (article, 3/4/2020)
FINSIA: The Regulators – Priorities Updated (speech 21/5/2020)
Regulation, trust and social licence (speech 11/8/2020)
Regulatory update (speech 26/10/2020)
Senate Economics Legislation Committee – Budget Estimates (speech 27/10/2020)
2020–21: ASIC’s focus in superannuation (article, 10/11/2020)
2020 in review and COVID-19 recovery (speech, 13/11/2020)
Getting on with it (speech 18/11/2020)
ASIC’s expectations for protecting vulnerable customers (speech, 26/11/2020)
2020 update on APRA-ASIC engagement (news item 22/12/2020)
2021
Reforms of the core regulatory framework for superannuation (article 4/2/2021)
Conversation with ASIC: AFIA Risk Summit (speech 16/2/2021)
Regulation for recovery: when pilots become enduring practice (speech 10/3/2021)
Parliamentary Joint Committee on Corporations and Financial Services - Opening statement (speech 19/3/2021)
Information Sheet 250 Giving AFS and credit licensees information about their representatives (news item 22/3/2021: see Reference checking and information sharing below)
House of Representatives Standing Committee on Economics - Opening statement (speech 29/3/2021)
Unfair contract term protections for small businesses (news item 1/4/2021: see Unfair contract terms below)
Australian Institutional Investor Roundtable (speech 22/4/2021)
Senate Economics Legislation Committee - Opening statement - 2 June 2021 (speech 2/6/2021)
Parliamentary Joint Committee on Corporations and Financial Services - Opening statement - 18 June 2021 (speech 18/6/2021)
The 4Cs of risky business (speech 25/8/2021)
Better Advice Act broadens ASIC’s regulatory responsibilities (news item 2/11/2021)
Regulatory reforms
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 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 made to ASIC for investigation by the Royal Commission
|
Referrals |
Number |
|---|---|
| Total referrals | 13 |
|
6 |
|
2 |
|
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 investigated by ASIC following the Royal Commission
|
Case studies |
Number |
|---|---|
| Total case studies investigated | 32 |
|
12 |
|
4 |
|
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 cases
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 |
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 |
|
|
2 |
Aware Financial Services Australia Limited (previously known as State Super Financial Services Australia Limited) |
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 |
|
|
3 |
BT Funds Management and Asgard Capital Management (part of the Westpac Group) |
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 |
|
|
4 |
Avanteos Investments Limited (formerly a subsidiary of CBA) |
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).
Poor financial advice cases
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 |
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 |
|
|
2 |
RI Advice Group Pty Ltd and a former financial adviser, John Doyle (RI Advice was previously an ANZ financial advice business) |
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 |
|
|
3 |
Former financial adviser and Royal Commission witness, Sam Henderson |
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 |
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 |
Addressing harm in insurance
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 |
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:
|
Completed |
23-182MR Select AFSL, related companies and managing director penalised a combined $13.6 million |
|
2 |
TAL Life Limited |
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 |
|
|
3 |
Youi Pty Ltd |
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 |
|
|
5 |
ACBF Funeral Plans and Youpla Group |
ASIC alleges that between 1 January 2015 and 30 November 2018:
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 |
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 |
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. |
Misconduct in credit and banking
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, |
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 |
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 |
|
|
3 |
Commonwealth Bank of Australia |
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 |
System and process failures causing financial harm to customers
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 |
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 |
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 |
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 |
Superannuation
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 |
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 |
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)