Regulator outlaws insurance broker
The Australian Securities and Investments Commission (ASIC) has imposed a permanent ban from providing financial services on a former authorised representative of CGU Insurance.
Following an investigation into the behaviour of Terence Howell, the regulator found he had been dishonest and deceptive in relation to managing a financial product.
As such, ASIC determined he was in breach of the financial services laws and was of the belief Howell would not comply with these laws in the future. On this basis, the industry watchdog imposed the permanent ban.
Howell’s misconduct took place between February 2004 and July 2005, when he was an authorised representative of CGU Insurance.
During this time, it is alleged the former broker failed to forward just over $76,000 in premiums to CGU within 37 days of receiving the money, and used a little over $38,000 dishonestly for personal purposes.
In addition, Howell deceived CGU by not keeping client premiums in a trust account before forwarding them on to the insurance firm.
The former broker can now seek to have ASIC’s decision reviewed by the Administrative Appeals Tribunal.
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