ASIC cancels AFSL of SME insurer

Following concerns about breaches of a number of reporting, financial and other financial services licensee obligations, ASIC has cancelled the Australian financial services licences (AFSL) of the following related companies: ACI Broking (WA) Pty Ltd (ACI Broking WA), ACI Broking (Vic) Pty Ltd, Assent Insurance Services Pty Ltd, Aurora Underwriting Agency Pty Ltd.

Perth-based ACI Broking WA's main business was providing insurance for commercial and domestic clients and providing advice for risk management, insurance products and insurance placement.

ASIC found that ACI Broking WA and related entities failed to lodge audited financial accounts for 2012-13 and 2013-14 within the required timeframe and failed to report this breach to the regulator.

ACI Broking WA is a 100 per cent owned subsidiary of Australian Consolidated Insurance Limited (ACIL) (in liquidation) and ACIL is 100 per cent owned by Insured Group Ltd (IGL).

IGL was delisted from the main board of the New Zealand stock exchange, NZX Limited on 7 March 2014.

“Licensees should have an appropriate compliance culture,” ASIC commissioner John Price said.

“ASIC will act to remove companies from the insurance industry that fail to discharge the duties and obligations imposed upon them by the financial services laws.”

ACI Broking WA and related entities have the right to seek a review of ASIC's decision at the Administrative Appeals Tribunal.

ASIC's enquiries are continuing.

The cancellations of these AFSLs are effective 22 September 2015.