Australia:Largest bank sued in class action over insurance advice

Australia's biggest bank, Commonwealth Bank of Australia (CBA), has said that a class action lawsuit has been filed against it over advice given on life insurance policies issued and recommended by three former subsidiaries, reported Reuters.

The lawsuit was filed by Shine Lawyers against financial advisors Commonwealth Financial Planning Ltd (CFPL) and Financial Wisdom Ltd, and The Colonial Mutual Life Assurance Society, a life insurer sold by CBA to AIA Group this year.

The lawsuit relates to advice given by CFPL and Financial Wisdom on policies issued by Colonial Mutual.

In January, the same law firm brought another class action lawsuit against CBA’s pension arm for not acting in customers interest by encouraging them to pick policies provided by CommInsure.

CBA stopped providing licensee services through Financial Wisdom and CFPL this year as part of the bank’s move away from wealth management.

Source: Asia Insurance Review