The corporate regulator has cancelled the Australian financial services (AFS) license of a Parramatta broker, citing a failure to operate honestly.
ASIC revoked the AFS licence of WD Gelle Insurance and Finance Brokers last week.
“In particular, ASIC found that the company received client funds and failed to forward them, in full, on to insurers,” an ASIC statement said.
“In addition, ASIC found there were shortfalls between the amounts received from customers and the amounts which should have been held in trust by the company on behalf of those customers.”
According to ASIC records, Vero filed a winding up application against WD Gelle in July 2013, but it was apparently withdrawn a few months later.
ASIC’s investigations are continuing, and WD Gelle has the right to appeal the decision.