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15-304MR ASIC permanently bans NSW insurance broker
ASIC has permanently banned Isaac Hakim, of Queens Park, New South Wales from providing financial services.
Mr Hakim is the sole director of Leedam Pty Limited (Leedam) which was known as I&S Insurance Broking Group Pty until 9 February 2015. Leedam provided financial services to clients in relation to general insurance products.
ASIC's investigation found that between January 2004 and August 2013 Mr Hakim and Leedam engaged in misleading and deceptive conduct in relation to the fees Leedam charged its clients.
On seven occasions, Mr Hakim caused false invoices to be created and sent to clients. The invoices overstated the insurance premium being charged to the client and understated the broker fee being charged by Leedam. This gave clients the impression that they were being charged a lower broker fee than was actually the case.
In addition, on numerous occasions Leedam charged its clients broker fees in excess of those disclosed in its financial services guides (FSGs).
Leedam also charged clients broker fees in circumstances where it had received a commission payment from the insurer, contrary to statements in the FSGs. Those excess fees totalled more than $3m.
It was further found that Mr Hakim was involved in the conduct of Leedam.
'ASIC is committed to raising conduct standards in the insurance industry', ASIC Deputy Chair Peter Kell said. 'We will take action to remove brokers who engage in misconduct that results in overcharging of clients.'
Mr Hakim has a right to appeal to the Administrative Appeal's Tribunal for a review of the Delegate's decision.