BREAKING NEWS: ASIC suspends broker license

BREAKING NEWS: ASIC suspends broker license | Insurance Business

BREAKING NEWS: ASIC suspends broker license
ASIC has suspended the Australian financial services (AFS) license of Parramatta-based Rural & General Insurance Broking (RGIB), it has been revealed.

The move follows the permanent banning of former director of Rural & General, Timothy Charles Pratten, who was found guilty of fraud in September 2015.

Rural & General failed to lodge financial statements, auditor’s reports and auditor’s opinions for the financial year ending 30 June 2014 and 30 June 2015, ASIC said in a statement.

“Licencees are required to lodge financial statements with ASIC to demonstrate their capacity to provide financial services,” ASIC deputy chair, Peter Kell, said.

“Failure to comply with reporting obligations can be an indicator of a poor compliance culture. ASIC won't hesitate to act against licensees who do not meet these important requirements.”

Pratten 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 approximately $5 million of income from 2003 to 2009.

ASIC has suspended RGIB’s license until 5 April 2017, if the documents have not been lodged by this date, the regulator will consider whether to cancel the license.

RGIB has the right to appeal the decision.

Permanent ASIC ban for former broker
Former broker guilty of fraud