AUB has appointed external advisers and put an interim CEO in place at Austbrokers Canberra following alleged misconduct at the brokerage.

In a statement to the Australian Securities Exchange (ASX) last week AUB said the “financial misconduct” was identified during an internal investigation and Austbrokers Canberra MD Greg Johnston was “removed” from his position as a result.

An interim CEO has been put in place, but AUB has declined to confirm their identity.

“Remedial action is being taken to address the misconduct, and the relevant authorities, regulators and the affected client have been notified,” the statement says.

“The group has engaged external advisers to assist in the ongoing internal investigation.”

AUB issued a further statement but would not respond to questions about the nature and scale of the alleged misconduct.

“Misconduct by Greg Johnston has been identified by Austbrokers Canberra,” the statement says.

“AUB Group has removed him as MD and as a director of the board, notified authorities, put in place measures to ensure continuity of client service, engaged external advisers and commenced an internal investigation.

“AUB Group and Austbrokers Canberra are fully co-operating with the authorities on this matter, and will not be making any further comment while this investigation is under way.”

Mr Johnston founded the business in January 2007.

His LinkedIn account says the business has evolved from a staff of 12 to become a “major operator” in the general insurance market, with 40 staff across four offices in Canberra, Sydney, Perth and the UK.

The business is understood to have more than 10,000 clients and turnover above $50 million.

The decision to highlight the matter through a statement to the ASX surprised some industry executives, because it is not material to the company’s financial performance.  insuranceNEWS.com.au understands the decision to publish details was made to head off market speculation and protect the group’s reputation and integrity.