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16-115MR ASIC permanently bans insurance broker
ASIC has permanently banned a Perth-based insurance broker after an investigation found he engaged in misleading and deceptive conduct.
ASIC's investigation found that from June 2013 to October 2014, Mr Haydn Reimers fabricated Builders' Warranty Insurance certificates and did not obtain the policies for four clients operating in the building and construction industry.
As a result of Mr Reimers' conduct, some of his clients were at risk of breaching residential dwelling building contracts and being in contravention of the Home Building Contracts Act. In one instance, a client risked being fined up to $70,000 by WorkCover WA and paying $4,367.49 for avoidance of insurance premium despite paying that amount for the premium to Mr Reimers.
In another instance, Mr Reimers failed to notify a client that their work insurance was due, and as a result the policy was cancelled. When the client subsequently tried to make a claim, it was rejected.
ASIC Commissioner John Price said individuals that worked for licensed insurance intermediaries hold a position of trust and are accountable for their actions.
'ASIC will not tolerate this type of behaviour. Those who engage in misleading and deceptive conduct will be removed from the industry', Mr Price said.
In permanently banning Mr Reimers, ASIC found reason to believe that he was not of good fame or character.
Mr Reimers has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
Mr Reimers is the 39th individual banned by ASIC from providing financial services since July 1 2015. Of that number, 16 have been permanently banned.
ASIC's investigation into Mr Reimers' conduct followed notification by the last three licensees he was employed by. All three licensees have provided voluntary assistance with the investigation, which included providing documents and witness statements. ASIC considers this to be a good example of licensees reporting breaches in line with their obligations, and found that Mr Reimers acted independently of his employers.
Regulatory Guide 78 Breach reporting by AFS licensees (RG 78) provides guidance for financial services licensees on reporting breaches, or likely breaches, of their obligations under the financial services laws.