The Australian Securities and Investments Commission (ASIC) has permanently banned a former insurance broker for misappropriating client premiums totalling $41,000 for his own benefit.

ASIC found that Justin Edward Hampshire of Sydney engaged in dishonest conduct between November 2015 and April 2019 while acting in his capacity as an authorised representative (AR) of Ausure Pty Ltd and as a sole director and shareholder of Balanced Risk Pty Ltd, a corporate AR of Ausure.

The regulator says Mr Hampshire incorrectly directed his clients to pay premiums into a business account he controlled when the money should have been paid straight into Ausure’s trust account.

“Mr Hampshire misappropriated $41,000 of four of his clients’ insurance premiums for his own benefit,” ASIC says in a statement today.

ASIC found Mr Hampshire is not a fit and proper person to provide financial services, control an entity that carries on a financial services business, or perform any function involved in the carrying on of a financial services business, and is likely to contravene a financial services law.

Mr Hampshire is currently facing criminal charges for fraud related offences, which are being prosecuted by the NSW Office of the Director of Public Prosecutions after a police investigation, ASIC says. The regulator says it understands the charges are listed for trial in Newcastle in the week of September 4.

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