Suspended brokerage has licence cancelled

ASIC has cancelled the Australian financial services (AFS) licence of Parramatta-based Rural & General Insurance Broking Pty Limited (RGIB).

The firm saw its licence suspended for six months in October 2016 for failing to comply with its legal obligations and licence conditions.

The corporate regulator found that Rural & General failed to lodge annual financial statements and auditor’s reports for the financial years ending June 30, 2014 and 2015.

“The annual lodgement of audited accounts is an important part of a licensee demonstrating it has adequate financial resources to provide the services covered by its licence and to conduct the business lawfully,” ASIC Deputy Chairman, Peter Kell said.

In 2016, ASIC permanently banned the former director of RGIB, Timothy Charles Pratten of New South Wales, from providing financial services and from engaging in credit activities.

In November 2004 APRA disqualified the MD of RGIB, Aaron Stephenson, from acting as a director or manager of a general insurer, or as a manager/agent of a foreign general insurer.

ASIC has made it clear that they will continue to contact AFS licensees who have not lodged audited financial statements and take appropriate action if they fail to lodge these statements.