ASIC has permanently banned a former insurance broker and authorised representative of Insurance Advisernet Australia (IAA).
Victoria-based Alan Charstone received the ban following an ASIC investigation which revealed Charstone did not comply with financial services laws at his time as representative of IAA between August 2009 and July 2010.
ASIC also believed that he would not comply with the financial services law in the future.
Charstone was found to have acted dishonestly and deceptively in relation to business and personal insurance.
Specifically, he failed to place adequate insurance cover for clients and misappropriated client funds, ASIC said.
According to an initial report prepared by IAA, the conduct involved 54 clients and cost IAA $58,803.68 to reinstate and/or place insurance cover for each client.
"It is important brokers in the insurance industry act with honesty and integrity as they are entrusted to help consumers and small businesses make important financial decisions," ASIC commissioner Peter Kell said.
"Having no insurance cover or inadequate insurance cover can have a devastating impact on consumers or small businesses if something goes wrong."
IAA, which cooperated with ASIC during the investigation, has recovered $9,000 from Charstone.
He has agreed to repay $12,489.51 to IAA, on account of funds misappropriated by him and as a contribution towards restitution owing to IAA.
ASIC investigated Charstone after it received notice of his breach from IAA.
