The Australian Securities and Investments Commission (ASIC) has obtained orders in the Federal Court in Sydney restraining Sydenham-based Liban Net from selling, or offering to sell, insurance products.

The court has restrained the group from dealing with, or disposing, any money received from clients who have purchased insurance contracts issued by or on behalf of Liban, or in the names Australian Private Insurance or API, which are allegedly owned by Liban.

In a statement late yesterday, ASIC says it is concerned that Liban offered and issued comprehensive and third-party car cover to members of the Bartercard network and members of the Barter Board Xchange. It says Liban does not have the authority to offer and issue insurance.

The regulator is worried the policies might be worthless, as Liban doesn’t hold an Australian financial services licence and is not an authorised representative of a licensee.

The matter returns to court next Monday for a directions hearing.