Compliance breaches have seen the Australian Securities and Investment Council (ASIC) cancel financial services licenses of insurer ACI Broking.
ACI in Western Australia and Victoria, plus Assent Insurance Services and Aurora Underwriting Agency were delicensed over “concerns about breaches of a number of reporting, financial and other financial services licensee obligations,” a statement from ASIC said.
ACI Broking and its related entities “failed to lodge audited financial accounts for the 2013 and 1014 financial years within the required timeframe,” the regulator’s statement said, noting that the requirement for reporting the breach to ASIC also didn’t occur.
John Price, ASIC commissioner, told the InsuranceBusiness website that other companies should take the move as a warning for those who breach compliance guidelines.
“Licensees should have an appropriate compliance culture,” he told the website. “ASIC will act to remove companies from the insurance industry that fail to discharge the duties and obligations imposed upon them by the financial service laws.”
The company has six locations in Australia and Kiwi branch Tasman Insurance has consultants in Auckland and Hamilton.
ACI Broking WA is owned by Australian Consolidated Insurance Limited, which is in liquidation and owned by Insured Group Limited (IGL).
IGL was delisted from the New Zealand stock exchange in March last year.
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