ASIC has banned Mr Warren Douglas Gelle, an insurance broker of Sydney, New South Wales from providing financial services for three years.

Mr Gelle was a responsible manager and director of WD Gelle Insurance & Finance Brokers Pty Ltd (DRGD) (WD Gelle).

In April 2014, ASIC cancelled the Australian financial services (AFS) licence of WD Gelle after an investigation found that the company had  failed to forward amounts received as client premiums to insurers and 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 (see 14-086MR).

Mr Gelle was banned after ASIC found that he failed to properly monitor compliance of WD Gelle's obligations as an AFS licencee and this facilitated the company's failure to maintain premium funding in trust pending payment to insurers.

Deputy Chairman Peter Kell said, ‘As the responsible manager, Mr Gelle was accountable for ensuring WD Gelle complied with its duty as an insurance broker to pass on premiums to insurers and more broadly, comply with its obligations as an Australian financial services licensee. ASIC's banning of Mr Gelle should serve as a clear message that oversight of compliance failures will result in removal from the financial services industry.’

Mr Gelle has the right to appeal to the Administrative Appeals Tribunal for review of ASIC’s decision.

Background

Under section 920A of the Corporations Act ASIC may make a banning order against a person if the person is not of good fame or character, if ASIC has reason to believe that the person is likely to contravene a financial services law or if the person has been involved in the contravention of a financial services law by another person.