ASIC Consultation Paper 346 – The Hawking Prohibition: Update to RG 38

This submission has been prepared by Consumer Action Law Centre with contributions and endorsement from the Financial Rights Legal Centre, Financial Counselling Australia and Super Consumers Australia

We strongly support banning the unsolicited selling of financial products, including insurance and superannuation. Unsolicited selling is an outdated and abusive practice with a significant risk of mis-selling people products they don’t want, need or understand. We do not see unsolicited sales delivering benefits to consumers. Generally, the products sold are expensive and poor value, and cheaper products are often available through direct sales channels.

RG38 is generally well drafted and gives clear guidance and useful examples, save for our comments in this submission.

This submission aims to ensure the hawking ban is effective and aligns with the spirit and intention of Commissioner Hayne’s reforms to sales practices in the financial system, and with best practice consent principles. A full list of recommendations is below.

Read our recommendations and full submission (PDF).

210819_ASICCP346_TheHawkingProhibition_Submission

 

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