Insurance broker faces three months behind bars
The Australian Investment and Securities Commission (ASIC) has secured its first gaol sentence under the Insurance (Agents and Brokers) Act with the sentencing of Royce Charlett from Ferntree Gully in Melbourne.
The Australian Investment and Securities Commission (ASIC) has secured its first gaol sentence under the Insurance (Agents and Brokers) Act with the sentencing of Royce Charlett from Ferntree Gully in Melbourne.
Charlett received a three month sentence for making false claims and for being un-registered by the ASIC. He was also sentenced to a further nine months gaol sus-pended for two years on 27 charges of theft and two charges of using a false docu-ment. In addition, Charlett was ordered to pay reparation of $52,000 to nine clients.
The Melbourne Magistrates Court was told Charlett had received money from cli-ents for general insurance and superannuation products, but he had not passed the money on to the insurance companies.
ASIC Victorian enforcement director Jamie Orchard says the case highlights the need for insurance brokers to be registered with ASIC.
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.
