ASIC bans unsolicited telephone sales of direct life insurance and CCI

ASIC has published the ASIC Corporations (Hawking-Life Risk Insurance and Consumer Credit Insurance) Instrument 2019/839 which prohibits a person making an offer to issue or sell a life risk insurance product or consumer credit insurance product to a retail client in the course of, or because of, an unsolicited telephone call unless the person, or another person acting on their behalf, has provided personal advice to the client in relation to the product. Background.

The Instrument modifies section 992A of the Corporations Act from 13 January 2020.

ASIC has updated its guidance in Regulatory Guide 38 The hawking provisions to reflect the ban.

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