Triton Underwriting Insurance Agency has been banned from trading in Australia until it obtains a licence. The ban came into effect after the Australian Securities and Investments Commission (ASIC) took the Triton case to the NSW Supreme Court.

Last December ASIC obtained injunctions against Triton and Trans Pacific Insurance Corporation - an insurer registered in the Cayman Islands - to prevent the companies from taking or sending any money or property belonging to them out of Australia.

In the latest case, ASIC told the court Triton and Trans Pacific Underwriting conducted financial services between August 2002 and March this year without holding an Australian financial services licence.

The court ordered Triton and Trans Pacific not to carry on any financial services business in Australia that contravenes the Corporations Act. But it may deal in financial products, including insurance, through an AFS licensee.

ASIC said Triton and Trans Pacific “consented to declarations” that they had made misleading or deceptive statements, including a statement that the Cayman Islands Monetary Authority had extended Trans Pacific's licence so that it could trade as an insurer in Australia; and that the paid-up share capital of Trans Pacific was $40 million.

The regulator said it had no reason to suspect that the court orders and declarations would affect the validity of insurance policies held with Trans Pacific, or Trans Pacific’s ability to meet claims.

Triton and Trans Pacific must now place advertisements in daily newspapers correcting the misrepresentations. They must also write to current policyholders informing them of the orders and offering to cancel their policy and refund any unexpired premium and commission they have paid.

Copies of the court’s orders are also to be sent to all brokers who arranged policies with Triton and Trans Pacific since August 2002.

Aradlay Insurance Brokers, which ASIC said placed a large amount of business with Trans Pacific, consented to the court orders. The broker has agreed to write to clients currently holding policies with Trans Pacific, advising them that Aradlay shared a common director, Mr Ian Douglas, with Trans Pacific between August 1 2002 and July 17 2003.