Operating through ACE’s Combined Insurance division in Victoria, Mr Gupta was responsible for selling “accident and sickness” insurance policies to the general public.
Following an investigation by the regulator, ASIC found Mr Gupta issued a policy in the name of a client who never agreed to or signed for an insurance policy and used a client’s bank account details on another client’s policy application without authorisation.
Mr Gupta also issued at least 12 fictional policies in the names of clients that either did not exist and or contained numerous fictional details in the policy applications, such as false employment details and non-existent bank accounts.
During his time with Combined Insurance, Mr Gupta was not paid a salary but received upfront and volume bonus commissions based on policies sold.
This was also along with “incentive prizes” such as electronic devices and gift vouches.
ASIC deputy chair Peter Kell said Mr Gupta’s actions were motivated by his own potential gains.
“For the protection of the public, ASIC will act to ensure dishonest insurance advisers are removed from the industry,” Mr Kell said.
Mr Gupta has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
very true Ben
[quote name=”Ben”]Don’t be fooled. These were not life insurance or income protection insurance products, and he was not an ‘adviser’. For once, Fairfax have correctly reported this. ASIC on the otherhand, have acted disgracefully by calling this person an adviser, and Josh Frydenberg has again shown his ignorance by using this case to highlight the need for changes to life insurance and raising the professional standards for financial advisers! What hope do IFA’s have with such clowns in a position of power?[/quote]
Don’t be fooled. These were not life insurance or income protection insurance products, and he was not an ‘adviser’. For once, Fairfax have correctly reported this. ASIC on the otherhand, have acted disgracefully by calling this person an adviser, and Josh Frydenberg has again shown his ignorance by using this case to highlight the need for changes to life insurance and raising the professional standards for financial advisers! What hope do IFA’s have with such clowns in a position of power?
He was able to move to the same AFSL as many other former ACE representatives. Why would so many of them be jumping from ACE and end up with the same new licensee? I wonder how many of them are still operating as advisers, or selling insurance with “no advice”, or making up fictitious clients, or have been reported to their licensee’s management or ASIC with no action taken? If the regulator is doing their job, you should hear plenty more about these guys.
Unfortunately he was part of our industry. He appears to have even managed to move on from Ace to another AFSL before they cancelled his AR in Feb this year. Until we insist on better min standards and legislate to separate product from advice why would ASIC bother to differentiate advisers when there is so much low hanging fruit to pick on?
I am still amazed that companies such as Combined are still in business or that ASIC for some reason continue to allow them to continue to operate. Inferior products aside, Combined’s main issues relate to the integrity, quality and training of their representatives including their sales culture. They are sales representatives and have nothing to do with qualified and licensed advisers so the general community once again are mislead to a certain extent. The appropriate regulators need to start prioritising the industry and advisers if they are serious about cleaning up the image in this space. What’s the point of chasing up and penalising those who litter when there are murderers walking the streets!
he is NOT a risk adviser! And he is not part of OUR industry. This is a witch hunt!
Good to see action. Somehow I feel he is not alone in that group?
Don’t call this fellow an adviser! He was a door to door salesman!
This is not just “dishonest conduct” this is plain out and out FRAUD. Has he been charged? or just banned from doing something he clearly shouldn’t be doing anyway.