ASIC bans NSW insurance broker
The Australian Securities and Investments Commission (ASIC) has permanently banned an insurance broker from NSW from providing financial services for misleading and deceptive conduct.
The corporate regulator banned insurance specialist, Leedam sole director, Isaac Hakim, after it was found he misled clients between January 2004 and August 2013 in relation to the fees he charged.
Hakim created and sent false invoices to clients seven times, where the invoices overstated the insurance premium charged to the client, and misled clients into thinking they were being charged a lower broker fee than was actually the case.
Leedam also charged clients broker fees of more than $3 million in instances where it had received a commission from the insurer, which contradicted with statements in the company's financial services guide (FSG).
Hakim also charged more broker fees than was indicated in the FSG.
ASIC found Hakim was involved Leedam's conduct.
ASIC deputy chair, Peter Kell, said "ASIC is committed to raising conduct standards in the insurance industry. We will take action to remove brokers who engage in misconduct that results in overcharging of clients."
Hakim may appeal to the Administrative Appeal's Tribunal for a review of the delegate's decision.
AUTHOR
Malavika Santhebennur
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