BREAKING NEWS: ASIC cancels broker licences

BREAKING NEWS: ASIC cancels broker licences | Insurance Business

BREAKING NEWS: ASIC cancels broker licences
ASIC has announced that it has cancelled the Australian financial services licenses of ACI Broking and its related entities.

The cancellation hits ACI Broking in Western Australia and Victoria as well as Assent Insurance Services and Aurora Underwriting Agency following “concerns about breaches of a number of reporting, financial and other financial services licensee obligations,” the regulator said in a statement.

ASIC commissioner, John Price, stressed the importance of culture for a successful business and warned others that the regulator will be hot on the heels of any other companies who breach compliance guidelines.

“Licensees should have an appropriate compliance culture,” Price said.

ASIC will act to remove companies from the insurance industry that fail to discharge the duties and obligations imposed upon them by the financial services laws.”

ACI Broking and its related entities “failed to lodge audited financial accounts for FY2013 and FY2014 within the required timeframe and failed to report this breach to ASIC,” the regulator continued in a statement.

The Perth-based ACI Broking WA was the main business of the company and catered for “all business, domestic and specialty insurance needs,” the company website notes.

The company has six locations throughout Australia with New Zealand branch Tasman Insurance consultants located in Auckland and Hamilton.

ACI Broking WA is a 100% owned subsidiary of Australian Consolidated Insurance Limited (ACIL) which is in liquidation and is owned by Insured Group Ltd (IGL).

IGL was delisted from the main board of the New Zealand stock exchange in March 2014, ASIC confirmed.

ASIC noted that it will continue with its enquiries.