ASIC suspends firm’s general insurance licence

ASIC suspends firm’s general insurance licence | Insurance Business Australia

Insurance News

ASIC suspends firm’s general insurance licence

Mutual Care allegedly failed to meet financial reporting obligations

Insurance News

By
Daniel Wood

The Australian Securities and Investments Commission (ASIC) has suspended the financial services (AFS) licence of a firm that was dealing in general insurance products.

“ASIC suspended the licence because Mutual Care [Mutual Care Pty Ltd (Mutual Care)] failed to meet its statutory audit and financial reporting obligations,” said a media release.

The release said the license of Mutual Care is suspended until Oct. 19 and described the firm as being authorised “to deal in general insurance products and provide financial advice in respect of general insurance products to retail and wholesale clients.”

The licence suspension, said the release, means that Mutual Care cannot provide financial services other than to existing clients.

Mutual Care has held an AFS licence since 2008 and can apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.

Yesterday, the regulator cancelled the AFS licence of a provider of coverages in the motor industry space. In a media release, ASIC said it cancelled the licence of Assurance Cover Australia (ACA) because the firm allegedly did not hold the required professional indemnity (PI) insurance cover.