A “landlord protection plan” run by a Brisbane debt recovery specialist has landed it in hot water, with the Australian Securities and Investments Commission (ASIC) and Australian Prudential Regulation Authority (APRA) declaring it is an insurance product and the company an unlicensed insurer.

ASIC has taken court action against Barclay MIS Landlord Protection Plan and the Barclay Group, for acting as an unlicensed insurer.

The landlord protection products, which were sold to between 120,000 and 150,000 landlords, provided benefits including reimbursement for lost rent and payments for property damage. 

It is unlawful to issue insurance products without holding an Australian Financial Services Licence or without APRA authorisation.

ASIC said the landlord protection products offered by Barclay group, including the Barclay Rent Guarantee, the Barclay Damage Guarantee and the Barclay Total Guarantee, were contracts of insurance.  Group Director David Banks undertook to withdraw the products from sale.