ASIC has accepted an enforceable undertaking from Melbourne company Insurance Brokers Limited to comply with the Insurance (Agents & Brokers) Act by paying premiums to insurers within 90 days of receipt.

Insurance Brokers Limited has agreed to ensure that all agreements with insurance underwriters comply with the Act; that it is not holding any premiums for more than 90 days; and will have additional audits undertaken of its insurance broking account to ensure it has been operated properly.

This is the latest in a series of actions taken against allegedly non-complying brokers by ASIC, which indicated last year that it would get tough on breaches of the Act. The regulator said that arrangements between brokers and underwriters allowing premium payment periods to be exceeded will result in “appropriate action”.