Stephen John Brell will step aside as managing director of Netstrata "while a current legal process plays out" and founder Ted Middleton (pictured) has returned to day-to-day management as acting managing director. In a media statement, Netstrata also confirmed it will defend the criminal proceedings launched against it and Brell by NSW Fair Trading. The firm's statement was updated Friday morning and refers to "legal proceedings" but makes no mention of the specific criminal allegations it faces.
Yesterday the regulator filed charges in the NSW Supreme Court alleging the firm contravened statutory obligations, failed to comply with fiduciary duties to owners corporations, did not adequately disclose conflicts of interest, received profits from undisclosed financial benefits and provided false or misleading information to the regulator.
In response to Insurance Business, a spokesperson said: "As these matters are now subject to a formal court process, Netstrata is limited to what it can say."
In the statement and its reponse to IB, Netstrata also emphasized what it described as proactive engagement with NSW Fair Trading since investigations began in 2024. "We have since implemented, or are implementing, that review's recommendations, most of them ahead of schedule," said the spokesperson. "In addition to those recommendations, Netstrata proactively made many changes of its own, including a total zero-commission policy."
The charges follow a 2025 report by McGrathNicol, commissioned by NSW Fair Trading, which raised concerns over transparency at Netstrata and made 22 recommendations. An ABC 7.30 report also found that Netstrata was charging insurance brokerage fees as high as three times the typical rate.
The Supreme Court will hear the case at Queens Square, Sydney, on 27 and 28 July.
