The NSW Supreme Court has permanently restrained Sydney companies Blundell & Associates Pty Ltd and Blundell Coleman Insurance Brokers Pty Ltd from carrying on an insurance broking business. Paul John Blundell and Matthew Clive Coleman, who were both directors of Blundell Coleman, were restrained from providing a financial service on behalf of another person who carries on a financial service business.

They were also ordered to pay the court costs of the Australian Securities and Investments Commission (ASIC), which brought the action. The court made declarations that Blundell Coleman had carried on a financial services business without holding an Australian Financial Services Licence in contravention of the Corporations Act 2001 and that Messrs Blundell and Coleman had both provided a financial service on behalf of this company when neither they, nor the company, held an Australian financial services licence.

It also found Blundell & Associates carried on business as an insurance broker without having a PI contract acceptable to ASIC, in contravention of the Insurance (Agents and Brokers) Act 1984; and that Mr Blundell and Mr Coleman authorised that contravention.

The matter will return to court on March 17 to consider ASIC’s application to have a liquidator appointed to wind up both companies. All of the orders and declarations were consented to by the defendants.