A funeral insurance company slammed at the banking royal commission for targeting Aboriginal customers was spruiking its products and handing out toys to children at the recent Koori Knockout.

The Aboriginal Community Benefit Fund, a non-Indigenous private company that is under scrutiny for its advertising and targeting of younger customers, was among the sponsors of the NSW Koori Rugby League Knockout and ran a stall at the event in Dubbo over the recent long weekend.

Aboriginal solicitor Mark Holden was working at the Financial Rights Legal Centre stall at the Knockout and noticed ACBF's presence.

"There was a pile of showbags they were handing out to everyone, especially children," he said.

"All the other stalls were either education providers such as universities, New South Wales services like transport and community services like the Financial Rights Legal Centre and Mob Strong, Debt Help."

Mr Holden said the ACBF stall also featured a football passing game and the chance to win a large screen TV, with a representative taking down contact details.

"These contact details could be used for future sales and lead generation — I don't know what the terms and conditions were for that, I don't know if they [the details] were destroyed or not," Mr Holden said.

Photos show a plush kangaroo toy and mini rugby ball featuring the logo of ACBF's Aboriginal Community Funeral Plan, a funeral expenses product.

ACBF was among the sponsors of the Koori Knockout rugby league tournament. ( Supplied: Mark Holden. )

The financial services royal commissioner, Kenneth Hayne, slammed ACBF in his interim report for "actively [seeking] to sell policies for children and young people."

"Despite being exposed by counsel for their practices, [ACBF] kept promoting their services at an Aboriginal event — it's business as usual," said Mr Holden

"That's something that's quite disappointing."

ACBF has acknowledged its presence at the event in a statement emailed to the ABC.

"We welcome the opportunity to attend such a celebrated sporting and community event and to speak with, listen to and hear many of our members and their feedback," the company's group general manager Leanne Court wrote.

"It is from this type of engagement that we learn the most and can continue to develop and provide relevant services to our members."

The ABC has contacted ACBF with further questions about its marketing activities at the Knockout.

Commissioner says advertising could be misleading

The banking royal commission heard how ACBF previously used the Rainbow Serpent in its marketing materials to target Indigenous customers.

ACBF has been in the corporate regulator ASIC's sights for a long time. Since a 1999 Federal Court order, it has been required to include a disclaimer in its advertising materials, stating that it is a private company not connected with any Aboriginal or government organisation.

Mr Holden told the ABC the stall at the Koori Knockout did feature a disclaimer on its bench in black and white, but there was no disclaimer on the toys.

"When you compare it with the giant sign with bright vibrant colours, it really does invite people to come there," he said.

"It feels like their disclaimer is a bit of an 'oh, by the way', when it's not actually an Aboriginal organisation."

The ABC understands ASIC is investigating the matter.

"The company knows what is required of it, it has been made crystal clear," said an ASIC spokesperson.

"It should make greater efforts to dissociate itself from any perception that it is related to an Aboriginal organisation or charity.

"We would welcome any information or evidence that they are flouting that requirement."

ACBF had posts on its Aboriginal Community Funeral Plan Facebook page advertising its presence at the Koori Knockout, but these appear to have been removed since this story was published.

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In the interim report, Commissioner Kenneth Hayne said ACBF's current marketing could be misleading and deceptive, breaching the law.

"ACBF's current advertising materials (even with the disclaimer, which has not always been used) may induce consumers into thinking that it is an Aboriginal-owned company," he said.

"Its materials use colours (red, yellow and orange) associated with Aboriginal culture, and use imagery that is significant in Aboriginal and Torres Strait Islander culture."

ACBF denies targeting kids

At the commission, ACBF chief executive Bryn Jones insisted the company did not target potential customers who had children and grandchildren, despite nearly two-thirds of its policyholders being aged under 30 and around a third under 18.

ACBF rejected the allegations and contended it has more young people signed up to its policies due to the larger proportion of the Aboriginal and Torres Strait Islander population aged under 18.

The commissioner rejected that argument in his interim report.

"I prefer the inference that ACBF does rely on the cultural significance of funerals to Aboriginal and Torres Strait Islander people, and to Indigenous mortality statistics, to actively sell its policies to children and young people in those communities," he said.

Commissioner Hayne said it was clear that ACBF's conduct fell below community standards and expectations and questioned the value of funeral insurance products more generally.

"If they give little value, how are they sold?" he asked.

"Should it be unlawful to sell funeral insurance for persons under 18 years?"

'Know what you're signing up for'

For people looking to take out funeral cover, Mark Holden said it is important to be aware of the terms and conditions of the policy.

"If they don't know what they're signing up for, it's okay to walk away, it's actually okay to go get legal advice," he said.

The Financial Rights Legal Centre runs 'Mob Strong, Debt Help', a free advice service for Aboriginal and Torres Strait Islander people across Australia.

Mr Holden said prospective customers should ask providers how much they would pay in premiums between now and the age of 70, and pay attention to cooling off periods.

"It's good to be able to consider the alternatives to funeral insurance that are a lot less risky, for example, a pre-paid funeral plan or a high interest savings account," he said.

While the banking royal commission is receiving extensive coverage in the press, Mr Holden is concerned the evidence about specific companies might not be getting through to the consumers who are targeted.

"There are members of community services who are very interested in the royal commission, but it's also very heavy for the community to understand," he said.

"I would definitely like to see some sort of very simplified, plain English version of what has been the evidence on funeral insurance, banking practices and also for [the royal commission's] findings as well."