ASIC bans ‘dishonest’ insurance broker
A NSW insurance broker has been permanently banned from providing financial services after an Australian Securities and Investments Commission (ASIC) investigation found he engaged in "dishonest conduct".
ASIC revealed that between March 2013 and 31 October 2013, Leslie Allan Gentle, a former authorised representative of Westlawn Insurance Brokers Pty Ltd, deposited clients' claims payments and premiums into his personal bank account on a number of occasions.
The regulator reported that Gentle deceived clients by failing to advise them of claims payments he had received on their behalf, while also using premium payments for "his own purposes".
ASIC deputy chairman, Peter Kell said, "It is essential for those in the financial services industry to act with honesty and integrity at all times.
"Individuals who do not act in this way will be removed from the industry."
ASIC also revealed that Westlawn Insurance Brokers had reported the matter to ASIC and have ensured that the affected clients of Gentle were not disadvantaged in any way.
AUTHOR
Nicholas O'Donoghue
Recommended for you
The Federal Court has dismissed a conflicted remuneration case brought by ASIC against the director of life insurance distributor Freedom Group, where Bali holidays and Vespa purchases were among sales incentives.
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
