ASIC has cancelled the Australian Financial Services (AFS) licence of Leedam Pty Limited (Leedam) after it ceased to carry on its financial services business.

Leedam held its AFS licence from 10 February 2004 and the cancellation of its AFS licence became effective on 17 November 2015. Leedam was authorised to provide financial services in relation to general insurance products.

Under the Corporations Act, ASIC has the power to cancel a financial services licence in circumstances where an AFS licensee ceases to carry on its financial services business. ASIC found that Leedam ceased to carry on its financial services business in February 2015.

Leedam has a right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.

Background

Leedam was formerly known as I&S Insurance Group Pty Limited, incorporated on 15 January 1993. It changed its name to I&S Insurance Broking Group Pty Limited on 19 January 1993 and then to Leedam on 9 February 2015.

On 21 October 2015,ASIC announced that it had permanently banned Mr Isaac Hakim, the sole director of Leedam, from providing financial services.

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 (refer: 15-304MR).