ASIC sues CBA over dodgy super advice

The Australian Securities And Investments Commission (ASIC) is suing the Commonwealth Bank and subsidiary Colonial First State Investments over a banking royal commission finding that the latter paid bank staff to promote a superannuation product to customers.

ASIC claims Colonial paid bank staff $22 million in what it calls conflicted remuneration to distribute the Essential Super product to customers from 2013 to 2019.

Conflicted remuneration is defined as any benefit that could influence the advice given to clients. The payments are banned.

The bank used its branch staff and online channels to promote Essential Super.

About 390,000 people signed up to the product.

ASIC is seeking civil penalties for each breach of the Corporations Act, which can result it fines of up to $1 million for each breach.

The regulator has not specified how many breaches it says occurred.

Court dates have yet to be set.

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