In response to ASIC’s concerns about its compliance with Australian financial services laws, Optus Insurance Services Pty Ltd will refund approximately $2.4 million (including interest) to around 175,000 Optus mobile customers and will write to around 500,000 customers who may be affected.
Optus has admitted it failed to provide some customers with a product disclosure statement and a financial services guide when they purchased insurance on their phones.
As a result, many customers may not have been aware of certain key features and limitations of the insurance that they purchased,” the corporate regulator said in a statement on Tuesday.
ASIC Deputy Chairman Peter Kell
ASIC deputy chairman Peter Kell confirmed:
It is important that when a business is licensed by ASIC to sell financial products to retail consumers, it ensures that it does so consistently with the representations it has made to consumers, and in compliance with the financial services laws.”
Optus confirmed it will do what is necessary to prevent future mistakes, including extra training for insurance sales staff.