ASIC bans insurance broker for seven years

ASIC has banned Raymond Arthur Robinson from providing financial services for seven years, after conducting an investigation.

Robinson was, until 17 February 2016, a director of Johansen Insurance Brokers Pty Ltd (JIB). The corporate regulator found that Robinson, from Wangaratta, Victoria, engaged in misleading and deceptive conduct between September 2013 and October 2015 in relation to business insurance.

ASIC commenced an investigation after it received a breach notification from the Steadfast member JIB. According to an initial statement received from the brokerage, the conduct involved 74 incidents and cost JIB a total of $13,000 to refund and/or place insurance cover for each client.

ASIC Deputy Chairman Peter Kell said, “It’s crucial that brokers and other professionals in the insurance industry act with honesty and integrity, as they are entrusted to help consumers and small businesses make important financial decisions.  ASIC will continue to hold these gatekeepers to account.”

Robinson altered the insurance policies of clients without their instruction, and misled clients as to the level of cover held and the amount of fees for service he would charge. JIB cooperated with ASIC during the investigation, has recovered $6,973 from Robinson as a contribution towards restitution owing to JIB and its clients.