ASIC bans Newcastle authorised rep

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16 July 2012

The Australian Securities and Investments Commission (ASIC) has permanently banned a Newcastle authorised representative who engaged in dishonest conduct involving more than 100 clients and $150,000.

Phillip Paddison was the sole director of Risk Transfer Services Pty Ltd, which was an authorised representative of Insurance Advisernet Australia (IAA).

ASIC says that between October 12 2010 and November 30 last year he failed to forward clients’ business and personal insurance payments.

Risk Transfer Services received the payments and should have sent them to IAA.

IAA later paid $100,000 to ensure all affected clients had their cover reinstated or replaced.

ASIC found Mr Paddison had not complied with financial services laws and that there was reason to believe he would not comply with such laws in future.