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ASIC issues deterrent to risk advisers

The Australian Securities and Investments Commission (ASIC) has issued a stern warning to financial advisers following the sentencing and imprisonment of a South Australian insurance broker.

Former PSC Horsell Insurance Brokers director Craig Horsell appeared in the Adelaide Distirct Court on Friday and was fined $75,000 and sentenced to three years in jail after pleading guilty to dishonestly using his position to authorise payments into his personal bank account.

“The sentencing of Mr Horsell, and his previous banning from providing financial services, should serve as a deterrent to any financial adviser tempted to deceive their clients or otherwise act dishonestly,” said ASIC deputy chairman Peter Kell.

“ASIC’s investigation found that between 7 September 2007 and 4 May 2010, Mr Horsell acted dishonestly when he authorised the transfers of 89 insurance premium payments from clients into his personal bank account but did not purchase the insurance products requested by the clients,” said an ASIC statement.