Ryan Law, the 22-year-old marketing student who set up a “club” to insure members against parking fines and speeding fines, has shut down his company after discussions with the Australian Securities and Investments Commission (ASIC).

Finesecure Auto Club had 56 members who paid $69 a year to have half their parking and speeding fines paid. Actuaries say Finesecure would have lost money if members incurred more than two parking fines or one medium-level speeding fine.

Media sources picked up Mr Law’s story when Finesecure started up, but official action didn’t start until Sunrise Exchange News asked whether he held an Australian financial services licence.

Mr Law originally said he didn’t need a licence because he was operating Finesecure as a club rather than an insurance company. But following discussions with ASIC, he agreed to close his business and refund all membership fees.