ASIC has permanently banned Mr Justin Owen Hughes, of Adelaide, from providing financial services.

Through different entities, Mr Hughes operated in the financial services industry for nearly 40 years. In recent years, Mr Hughes operated in the Adelaide Hills region under the business name Oakbank Insurance Services and controlled two companies, Hokonui Enterprises Pty Ltd (which has been in liquidation since September 2006) and Rangatira Enterprises Pty Ltd.

Mr Hughes’ work was related entirely to insurance-based products. He and his companies were authorised representatives of a number of Australian financial service (AFS) licence holders all of which have terminated his authority to act as representative.

The AFS licensees reported a number of suspected breaches to ASIC, primarily relating to the failure by Mr Hughes and his companies to remit client premium monies.

The ASIC investigation, which was assisted by the co-operation of the AFS licences, found that from November 2005 to June 2006 Mr Hughes and the companies he controlled:

• failed to remit to insurers in excess of $400,000 paid into a trust account by clients as insurance premiums; and

• that money in the trust account was used by Mr Hughes for his personal and business expenses.

ASIC permanently banned Mr Hughes after forming the view that he was unlikely to comply with financial services laws in the future.

ASIC notes that the affected client’s insurance policies were honoured by their insurers.

Mr Hughes has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.

Background

[This paragraph was removed on 18 May 2018 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]