ASIC takes action against former insurance broker
A former insurance broker has been permanently banned from engaging in credit activity, following the intervention of the corporate regulator.
According to a statement issued by the regulator, Leroy Bowmaker – a former director of All Class Insurance Brokers – was banned after ASIC found he was “not a fit and proper person to engage in credit activities”.
In an investigation conducted between 2011 and 2012, ASIC found Mr Bowmaker misused over $460,000 of client insurance premium funds and made “dishonest representations” to underwriters to explain All Class’ non-payment of client insurance premiums.
ASIC also found Mr Bowmaker failed to pass on over $330,000 in insurance premiums, meaning a client had no insurance in place and “suffered loss” when attempting to claim on the policy.
The regulator’s investigation also found he submitted 12 false applications for loans to pay insurance policy premiums, lacked the competence to engage in credit activities and became bankrupt, in part, as a consequence of his involvement with All Class.
“Dishonest conduct is not compatible with the honesty and integrity required of those engaging in credit activity,” ASIC deputy chairman Peter Kell said.
“ASIC will ensure that individuals who behave dishonestly are removed from the credit industry,” he said.
Mr Bowmaker has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
1-in-3 clients considering dumping their adviser
One-third of clients and half of SMEs are thinking over either switching or ditc...
Practifi completes $24m funding round
Aussie advice business management platform Practifi has recently completed a $24...
Former IOOF head to front HESTA advice arm
Industry fund HESTA has appointed a former IOOF practice management head to lead...