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ASIC banned insurance broker for life

A NSW insurance broker has been permanently banned from providing financial services after ASIC found he had been engaging in dishonest conduct that involved more than 100 clients and over $150,000.

ASIC has permanently banned Phillip Paddison of Mayfield, NSW, after it found that between 12 October 2010 and 30 November 2011, Paddison, who was the sole director of Risk Transfer Services Pty Ltd, failed to forward clients’ business and personal insurance payments.

These payments, paid to Risk Transfer Services, were meant to be forwarded to its financial services licensee, Insurance Advisernet Australia Pty Ltd (IAA). In many cases Paddison also failed to ensure clients were adequately insured.

As a result of Paddison’s actions, IAA paid approximately $100,000 to ensure that all affected clients had their insurance cover either reinstated or adequately replaced.

ASIC banned Paddison after finding that he had not complied with financial services laws and that there was reason to believe he would not comply with financial services laws in the future.

“We want to make sure that people providing financial services act with integrity and honesty, and, if they don’t, we will take action to make sure they are removed from the industry,” said ASIC commissioner Greg Tanzer.

ASIC commenced its investigation upon receiving a breach notification from IAA. IAA had detected various breaches during a risk management review conducted by their Compliance and Risk team.

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