ASIC snares rogue risk agent
The Australian Securities and Investments Commission (ASIC) has obtained interim orders in the Federal Court against former insurance agent, Domenic Romeo prohibiting him from receiving any monies from clients for insurance premiums or arranging insurance for any persons until further direction from the Court.
Romeo, who used the business name Arkaba Insurance, is presently not an authorised representative of any licensee dealing in insurance products.
He was previously acting on behalf of Guardian Insurance Brokers and may also have referred to Total Insurance Services or Insurance Adviser Net Australia when discussing insurance with clients.
The court action was commenced following an investigation by ASIC into concerns that Romeo was receiving payments from clients for insurance premiums under the name Arkaba Insurances, despite not having authorisation to do so.
ASIC has warned former clients of Romeo or Arkaba Insurances to check whether insurance has been arranged on their behalf.
“If you use an insurance agent to make payments in relation to an insurance policy, ASIC advises you to check that the agent is properly authorised to act on behalf of an insurer or licensed insurance broker,” ASIC deputy executive director of enforcement Allen Turton says.
ASIC is also investigating allegations that in a number of cases, Romeo failed to place any insurance, even though a premium was paid by clients.
The matter is re-listed for directions on July 21, 2004.
Recommended for you
ASIC has banned a former AFSL director after he failed to adequately address fees-for-no-service conduct by one of his firm’s representatives.
The Financial Advice Association Australia has appointed two new board members following two weeks of voting, as well as one re-elected member.
Advice licensee Bombora has introduced a board of six financial advisers from its national network to ensure industry voices are heard collectively on future decisions.
Technology firm Iress and investment manager Challenger have formed a strategic partnership to launch an adviser solution to better serve their retiring clients.
