ASIC takes action against Perth financial services firm

The Federal Court in Perth has ordered that iPlus Risk Management Pty Ltd and its directors, Michael Andersen and John Pizzey, refrain from operating, or being involved in, a financial services business without a licence.

The proceedings follow an investigation by the Australian Securities and Investments Commission into the conduct of iPlus, a Perth-based company, which offered business and home insurance cover to its clients.

The Court also made orders preventing iPlus and its directors from representing that they act on behalf of others when that is not the case.

The Court accepted ASIC allegations, declaring that iPlus, Mr Andersen and Mr Pizzey carried on a financial services business without holding an Australian financial services licence, in contravention of the Corporations Act, and that contracts of insurance between iPlus and specific policy holders are void.

'It is critical that people and companies involved in the operation of financial services businesses are properly licensed. The law insists upon these licensing requirements so that safeguards are in place to better protect consumers', ASIC's Deputy Executive Director of Enforcement, Mr Allen Turton said.

THE FULL MEDIA RELEASE APPEARS BELOW.
Australian Securities & Investments Commission (ASIC)

MEDIA RELEASE
Thursday 27 April 2006 06-128

ASIC TAKES ACTION AGAINST UNLICENSED PERTH FINANCIAL SERVICES COMPANY
The Federal Court in Perth has ordered that iPlus Risk Management Pty Ltd (iPlus) and its directors, Mr Michael Andersen and Mr John Pizzey, refrain from operating, or being involved in the operation of, a financial services business without a licence.
The proceedings follow an investigation by the Australian Securities and Investments Commission (ASIC) into the conduct of iPlus, a Perth-based company, which offered business and home insurance cover to its clients.
The Court also made orders preventing iPlus and Messrs Andersen and Pizzey from representing that they act on behalf of others when that is not the case.
The Court accepted ASIC allegations, declaring that iPlus, Mr Andersen and Mr Pizzey carried on a financial services business without holding an Australian financial services licence, in contravention of the Corporations Act, and that contracts of insurance between iPlus and specific policy holders are void.
'It is critical that people and companies involved in the operation of financial services businesses are properly licensed. The law insists upon these licensing requirements so that safeguards are in place to better protect consumers', ASIC's Deputy Executive Director of Enforcement, Mr Allen Turton said.
Mr Andersen, Mr Pizzey and representatives of Iplus failed to appear at the Court hearing.