Ten-year ban for insurance representative

A Victorian insurance representative has been banned from providing financial services as a result of action pursued by the Australian Securities and Investments Commission (ASIC).

The regulator said that the man, Terrence Wayne McDonald of Portland in Victorian, had been banned after it was found that he had not complied with financial services laws. ASIC also said there was reason to believe he would not comply in the future.

An ASIC announcement said McDonald had been employed as a sub-authorised representative of a regional insurance broker, Jacarlen Pty Ltd, between March 10, 2004 and June 15, 2009.

ASIC said it had found that McDonald had engaged in conduct that was likely to deceive the insurance broker and his clients. McDonald had claimed that insurance payments had been forwarded to the broker’s trust account, and had then told his clients that they were insured when this was not the case, the regulator said.

ASIC found that, specifically, between December 3, 2008 and June 4, 2009, McDonald delayed deposit of $24,605.80 in premiums paid by 46 clients into an insurance broker’s trust account.

ASIC said McDonald had the right to lodge an application for review of the banning decision with the Administrative Appeals Tribunal.