ASIC claims first broker scalp
The Australian Securities and Investments Commission (ASIC) has claimed a first scalp in its war against unregistered insurance brokers.
The Australian Securities and Investments Commission (ASIC) has claimed a first scalp in its war against unregistered insurance brokers.
Victorian-based Elvis Korcari has had his registration revoked for five years. Kor-cari operated his business initially under the name Dandenong Insurance Brokers and later as VIP Insurance Brokers.
While Korcari was first registered as an insurance broker in February 1999, ASIC found he had been operating as a broker prior to gaining registration. Furthermore, ASIC contends he concealed broking fees from clients in breach of the Insurance (Agents and Brokers) Act 1984 and “had assisted certain clients to enter into pre-mium loan arrangements to enable them to pay both their insurers’ premiums and the concealed broking fees”. Korcari was also responsible for the misconduct of his employees and agents, according to ASIC.
Last November, ASIC announced a crackdown on insurance brokers not independ-ently registered. At the time, director of ASIC’s office of consumer protection Pe-ter Kell warned “…people who claim to be insurance brokers, but who are not registered can expect ASIC to take prompt enforcement action to prevent these abuses of law”.
The move followed investigations by ASIC last year which revealed more than 300 people advertising as insurance brokers in the Yellow Pages were unregistered.
Recommended for you
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
A $3.5 million settlement for victims of Melissa Caddick has been approved by the Federal Court following an initial agreement last December.
The Reserve Bank of Australia has delivered its first rate decision since the introduction of a new board structure last month.
Digital advice provider Otivo has launched an interactive tool, powered by artificial intelligence and Otivo’s own advice engine, to help answer client questions.
