Treasurer Josh Frydenberg says reports that the public prosecutor will press charges against Commonwealth Bank over the conduct of its life insurance arm CommInsure “does underline how serious the allegations have been against some of those in the financial services sector”.
The Australian and the Australian Financial Review both reported that the Commonwealth Department of Public Prosecution would announce charges on Friday.
Commonwealth Bank and the Australian Securities and Investments Commission both declined to comment to AAP.
The Commonwealth Department of Public Prosecution did not immediately respond to a request for comment
CommInsure was criticised by the financial services royal commission for allegedly using outdated medical definitions to deny claims.
Senior counsel assisting the royal commission Rowena Orr QC said last year that CommInsure may have committed a crime by running misleading ads about trauma coverage, as they may have left people believing they would be covered for a heart attack when that wasn’t necessarily the case.