Financial company ClearView has paid out $730,000 to more than 200 customers over poor life insurance advice.
The corporate watchdog on Wednesday announced ClearView had completed a remediation program after reviewing 4,269 advice files from 279 advisers.
That resulted in 215 policyholders being compensated to the tune of $730,138, while another 21 opted for non-financial remediation.
The Australian Securities and Investments Commission first identified ClearView’s wrongdoing as part of a life-insurance industry review in 2014.
The regulator said its main concerns were inadequate needs-based analysis, explanation of funding insurance premiums with superannuation, consideration of premium affordability issues and disclosure of replacement products.
Financial adviser Jason Churchill’s conduct was also singled out, with the staffer later agreeing to undergo additional training and be placed under strict supervision.
A broader ClearView review of its advisors conceded they hadn’t provided adequate needs analysis to customers.
The ASX-listed business also refunded more than $1.5 million to 16,000 customers in February 2018 after pressuring them to buy life insurance over the phone.
Later that year at the banking royal commission, ClearView admitted to breaching anti-hawking laws by making 300,000 unsolicited cold calls over a three-year span.
ClearView shares fell to a more than five year low of 56 cents earlier this month after climbing as high as $1.75 in January 2018.