ASIC cancels suspended brokerage’s licence

ASIC cancels suspended brokerage’s licence | Insurance Business

ASIC cancels suspended brokerage’s licence
ASIC has cancelled the Australian Financial Services (AFS) licence of Rural & General Insurance Broking.

The Parramatta-based firm saw its licence suspended in November 2016 for failing to comply with its legal obligations and licence conditions.

ASIC found that Rural & General failed to lodge annual financial statements and auditor’s reports for the financial years ending June 30, 2014 and 2015.

“The annual lodgement of audited accounts is an important part of a licensee demonstrating it has adequate financial resources to provide the services covered by its licence and to conduct the business lawfully,” ASIC deputy chairman Peter Kell said.

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The former director of Rural & General, Timothy Charles Pratten, was suspended from providing financial services and from engaging in credit activities in 2016.

Pratten was found guilty in 2015 and was sentenced to five years in jail with a two-year non-parole period in April 2016 for seven counts of fraud.

Pratten’s conviction followed an investigation by the Australian Taxation Office, which found that he had failed to declare income amounting to approximately $5 million from 2003 to 2009.

Rural & General had held an AFS licence since March 2003.

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