ASB Bank

October 2024

The Financial Markets Authority – Te Mana Tātai Hokohoko – has filed civil proceedings against ASB Bank Limited for allegedly making false or misleading representations in relation to insurance products and banking services.

The FMA’s proceedings have two causes of action. The first relates to the failure to apply multi policy discounts on ASB-branded insurance products. The second cause of action is in respect of ASB’s failure to consistently apply fee exemptions to certain customer accounts with access to ASB’s Fastnet Banking service, specifically:  Society Cheque, Education Administration, and Business Focus accounts.

A total of 23,062 customers were affected by the multi policy discount issue between April 2014 and May 2022. The total value of overcharged premiums was approximately $2.8 million. During the same period, 2,435 customers were affected by the Fastnet Banking issue, totalling approximately $1,147,276 in overcharges.

The FMA is seeking declarations ASB breached the FMC Act, pecuniary penalties and costs.