Insurance agent charged after ASIC appeal
The Australian Securities and Investments Commission (ASIC) has successfully appealed to the South Australian Supreme Court after the Magistrates Court failed to convict a former insurance agent.
Following an ASIC investigation, it was found that Janice Lee Lewinski had failed to pass on insurance premiums received by her clients to the relevant insurance providers.
As a result, she was permanently banned by ASIC from providing financial advice.
However, the Adelaide Magistrates Court decided to discharge Lewinski without conviction, placing her on a $500 good behaviour bond for an 18-month period.
This was despite the fact that Lewinski had entered a guilty plea for all charges laid against her.
Following ASIC’s appeal, Honour Justice Besanko has ordered that a conviction be recorded in each of the ten charges.
Deputy executive director of enforcement Allen Turton said: “ASIC will take action to protect consumers of financial services, particularly where agents or advisers use their position for financial gain and the detriment of their clients.”
Recommended for you
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.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
