The Australian Securities and Investments Commission (ASIC) has permanently banned Charles Pratten from providing financial services and engaging in credit activities.

The founder of Rural & General Insurance and Rural & General Insurance Broking was jailed for five years in April after failing to declare more than $5 million of income.

He was found guilty last year in the NSW Supreme Court on seven counts of obtaining a financial advantage by deception, by deliberately understating his income on tax returns.

As reported by insuranceNEWS.com.au (see earlier story), the Commonwealth Director of Public Prosecutions has lodged an appeal over the “manifestly inadequate” sentence.

Under the Corporations Act and National Credit Act, ASIC can ban anyone convicted of a fraud offence.

Pratten can appeal to the Administrative Appeals Tribunal for a review of the decision.

As a result of his conviction, he is automatically disqualified from managing corporations.

He has been removed as a company officeholder of Practical Insurance Claims Administration Pty Ltd and as Australian financial services licensee, Rural & General Insurance Broking Pty Ltd.