ASIC bans broker

A NSW insurance broker has been banned from the industry for life, after raking in excess fees of more than $3 million by overcharging clients.

Leedam Director Isaac Hakim has been banned following an ASIC investigation revealing the broker had engaged in misleading and deceptive conduct relating to client fees.

Hakim was found to have caused false invoices to be created and issued to clients, which overstated insurance premiums and understated the broker fee, on seven separate occasions.

Leedam also charged broker fees in excess of those disclosed in its financial services guide, as well as charging fees after having already received a commission payment from the insurer, with excess fees totalling more than $3 million.

“ASIC is committed to raising conduct standards in the insurance industry,” ASIC Deputy Chair
Peter Kell says.

“We will take action to remove brokers who engage in misconduct that results in overcharging of clients.”