ASIC permanently bans WA broker

A Perth-based insurance broker has been permanently banned by ASIC for ‘misleading and deceptive conduct’.

Following an investigation, ASIC discovered that from June 2013 to October 2014, Haydn Reimers, a broker at McKenna Hampton, fabricated Builders’ Warranty Insurance certificates and did not obtain the policies for four clients operating in the building and construction industry.

As a result, some of Reimers’ clients were at risk of breaching residential dwelling building contracts and being in contravention of the Home Building Contracts Act.  In one instance, a client risked being fined up to $70,000 by WorkCover WA and paying $4,367.49 for avoidance of insurance premium despite paying that amount for the premium to Reimers.

In another instance, he failed to notify a client that their work insurance was due, and as a result the policy was cancelled. When the client subsequently tried to make a claim, it was rejected.

“ASIC will not tolerate this type of behaviour,” said ASIC Commissioner John Price. “Those who engage in misleading and deceptive conduct will be removed from the industry.”

In permanently banning Reimers, ASIC found reason to believe that he was not of good fame or character. Reimers has the right to appeal to the Administrative Appeals Tribunal for a review of the decision.