Insurance broker slapped with lifetime ban

Insurance broker slapped with lifetime ban

Insurance broker slapped with lifetime ban A Perth-based insurance broker has been permanently banned by ASIC after being found to have engaged in blatantly misleading and deceptive behaviour towards his clients.

The ASIC investigation revealed that from June 2013 to October 2014, Haydn Reimers, an account manager from McKenna Hampton, invented Builders' Warranty Insurance certificates and neglected to obtain the policies for four clients operating in the building and construction industry.

Reimers' negligence caused some of his clients to be at risk of breaching residential dwelling building contracts and breaking the Home Building Contracts Act. 

One client faced being fined up to $70,000 by WorkCover WA and paying $4,367.49 for avoidance of insurance premiums despite having already paid that amount for the premium to Reimers.

In another example, Reimers failed to let a client know that their work insurance was due, which led to the policy being cancelled. When the client later tried to make a claim, it was rejected.

ASIC Commissioner John Price said individuals who worked for licensed insurance intermediaries held a position of trust and were accountable for their actions.

ASIC will not tolerate this type of behaviour. Those who engage in misleading and deceptive conduct will be removed from the industry”, he said.

In permanently banning Reimers, ASIC found reason to believe that he was not of good fame or character.
Reimers has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.

Reimers is the 39th individual banned by ASIC from providing financial services since July 1 2015. Of that number, 16 have been permanently banned.