ASIC takes action against unlicensed firm selling insurance products

ASIC has acted to stop two Queensland-based financial services companies from selling insurance products and providing financial services without being licensed.

ASIC obtained orders in the Queensland Supreme Court against Sport & Events Promotions Pty Ltd and Prize Promotions Pty Ltd, who were found to be in breach of the Corporations Act by carrying on a business of dealing in financial products in Australia without holding the required Australian financial services (AFS) licence.

The Court also found that Anna Bennett, the sole director of the companies, aided and abetted the companies in breaching the Corporations Act. The companies contracted with Australian-based clients to provide prize indemnity, a form of insurance which covers the promoters of events in which participants are offered the opportunity to win a prize. The companies agreed to indemnify promoters should a prize be won.

Bennett and the companies admitted to breaching the Corporations Act and the parties filed an Agreed Statement of Facts. The Court made orders requiring Bennett and the companies to stop selling insurance products in breach of the Corporations Act and to stop them from providing financial services in the future without holding a licence or being authorised by a licence holder.