A Victoria-based sub-authorised representative of an insurance broker has been banned from providing financial services for 10 years as a result of an ASIC investigation.
The corporate regulator found Terrance McDonald had not complied with the law governing financial services in relation to his past activities and expressed a belief that McDonald would not comply with these same laws in the future.
Specifically, ASIC's investigation revealed McDonald had deceived his clients and his brokerage firm by telling all parties the relevant premiums had been paid into a specific trust account when they had not.
It meant the clients were effectively uninsured when McDonald had told them cover was in place.
At the time of the indiscretions, McDonald was employed by insurance broking firm Jacarlen.
The unlawful acts took place between December 2008 and early June 2009. Specifically, McDonald collected insurance premiums from 46 clients and delayed deposit of those funds into the relevant broker's trust account.
The sum total of the insurance premiums involved was $24,606.
McDonald can appeal to the Administrative Appeals Tribunal for a review of the regulator's decision.
