ASIC permanently bans insurance adviser
By WP | 22/03/2013 12:00:02 AM | 2 comments
ASIC has handed a lifetime ban to a Sydney insurance broker after an investigation found he repeatedly duped clients over their insurance policies.
Ronald Coshott, of Edgecliff, New South Wales, was the director and sole responsible officer of Bay Pacific Insurance Brokers.
ASIC found Coshott engaged in dishonest conduct between 15 October, 2010, to 28 March, 2012, by providing invoices to a client that specified insurance was in place when it was not; and emailing falsified insurance certificates to a client in March 2012 which falsely represented insurance was in place since 2009.
He also falsified insurance certificates stating that Bay Pacific was a Lloyds of London coverholder when this was not the case; and told a client that he had contacted their current insurers who advised they were no longer able to provide insurance. It was found the insurance company had not been the client's insurer since their insurance was cancelled in 2009.
In permanently banning Coshott, ASIC found reason to believe he “was not of good character”.
Coshott has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
Mortgage advice coming from a planner near you?
Mandatory degree another step towards professionalism
Not enough auditors to keep up with SMSFs
Sue Laing - the risk store on 25 Mar 2013 12:20 PM
It's clear from the references to Lloyd's that he was not life - it's pretty easy in general insurance to defraud clients (if one is so inclined) as brokers have a lot of control over documentation and premiums paid. The fact that brokers are allowed to run trust accounts and that they can bill clients direct and receive premiums direct makes it more open to abuse. I wish the press would do their homework and make sure the differentiation is clear. ASIC calls all insurance insurance so the financial journos should have the knowledge to check and then differentiate the two areas for the benefit of readers.