ASIC's Daniel Crennan.Credit:Justin McManus
A spokesman for the companies said they were reviewing the allegations and would respond in due course.
ASIC has taken civil action against the companies,despite two of the breaches it alleges also carrying potential criminal liability.
ASIC deputy chairman Daniel Crennan said the conduct of Select was particularly poor but there were several hurdles that have stopped the regulator launching criminal action,including the standard of proof known as the Briginshaw test.
"One of the main reasons a regulator takes civil penalty proceedings is,because although the Briginshaw test applies,the standard of proof is lower,"he said.
A civil penalty process should not take years upon years.
ASIC's Daniel Crennan
"It's partly standard of proof and partly the difficulties we face in bringing criminal proceedings generally - they take a lot longer.
"Mr Howden has already gone through the process of the royal commission,so one would have thought that given what he's said there and what the royal commission has said,that a civil penalty process should not take years upon years."
The banking royal commission described Mr Howden's evidence in its interim report,saying he conceded there had been a spike in sales to customers living in 43 postcodes with a high proportion of Aboriginal and Torres Strait Islander people.
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"Mr Howden attributed the spike to two sales incentive arrangements and to abuses of Select’s referral processes by two particular sales representatives,"the interim report said.
ASIC also accused Select,BlueInc and Mr Howden of breaching the laws around conflicted remuneration in relations to the perks allegedly offered to staff for selling the most insurance policies.