ASIC claims first broker scalp
The Australian Securities and Investments Commission (ASIC) has claimed a first scalp in its war against unregistered insurance brokers.
The Australian Securities and Investments Commission (ASIC) has claimed a first scalp in its war against unregistered insurance brokers.
Victorian-based Elvis Korcari has had his registration revoked for five years. Kor-cari operated his business initially under the name Dandenong Insurance Brokers and later as VIP Insurance Brokers.
While Korcari was first registered as an insurance broker in February 1999, ASIC found he had been operating as a broker prior to gaining registration. Furthermore, ASIC contends he concealed broking fees from clients in breach of the Insurance (Agents and Brokers) Act 1984 and “had assisted certain clients to enter into pre-mium loan arrangements to enable them to pay both their insurers’ premiums and the concealed broking fees”. Korcari was also responsible for the misconduct of his employees and agents, according to ASIC.
Last November, ASIC announced a crackdown on insurance brokers not independ-ently registered. At the time, director of ASIC’s office of consumer protection Pe-ter Kell warned “…people who claim to be insurance brokers, but who are not registered can expect ASIC to take prompt enforcement action to prevent these abuses of law”.
The move followed investigations by ASIC last year which revealed more than 300 people advertising as insurance brokers in the Yellow Pages were unregistered.
Recommended for you
The central bank has released its decision on the official cash rate following its November monetary policy meeting.
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
HLB Mann Judd Perth has announced its acquisition of a WA business advisory firm, growing its presence in the region, along with 10 appointments across the firm’s national network.
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
