ASIC accepts insurance broker’s admission of guilt

An Australian insurance broker has offered an enforceable undertaking (EU) to ASIC to permanently refrain from providing financial services after some deeply fraudulent activity.

ASIC has accepted the EU from Paul Meier of Findon, South Australia, following an investigation into his conduct as a director and responsible manager of Barker Meier Insurance Brokers Pty Ltd (BMIB).

In offering the EU, Meier, 49, has acknowledged the views held by ASIC as a result of its investigation that:
 

• on 16 occasions between 31 October 2010 and 20 November 2011, he submitted loan applications to Premium Funding Pty Ltd containing false information
• the false loan applications referred to above caused Premium Funding to advance loan funds to Meier, and
• the loan funds received by Mr Meier from Premium Funding were used by Meier to meet the business expenses of BMIB and were therefore applied to the benefit of Meier.

“Persons like Mr Meier who are involved in the financial services industry must provide services honestly and act in the best interests of clients,” said ASIC commissioner Peter Kell.  “ASIC will seek to ban brokers and advisers who fail to meet these standards and thereby undermine consumer confidence.’

Barker Meier Insurance Brokers Pty Ltd was incorporated on 8 November 1991 and Meier was a director and 50% shareholder. The company held an Australian financial services licence and Meier was the responsible manager and also provided financial services to retail clients.

The company was engaged in insurance broking in both Adelaide and Melbourne and at various times Meier was the financial controller for the company responsible for the administration of its trust account.