Insurance: Banned agent stole from clients and gave bad advice

ASIC banned Mr Phillip John Kingston of North Hobart following his conviction on two charges of stealing by agent, one charge of stealing and one charge of dishonestly acquiring a financial advantage. The offences occurred between January 2007 and June 2008.
On 20 May 2010, Kingston was sentenced in the Magistrates' Court of Tasmania after he pleaded guilty to each charge.
Under the Corporations Act 2001 (the Corporations Act), ASIC can ban a person from providing financial services if the person is convicted of fraud. The offences committed by Mr Kingston constitute 'serious fraud' under the Act.
ASIC made the decision to permanently ban Kingston as it had reason to believe he is not a person of good fame and character. Under such circumstances, the Corporations Act requires the banning to be permanent.
Kingston’s banning reinforces ASIC’s focus on maintaining public confidence in the financial services industry.
At the time the offences were committed, Kingston was an authorised representative of Choice Future Planning Pty Ltd. Mr Kingston subsequently became an authorised representative for Combined Insurance and was so at the time of the court proceedings.

Kingston applied to the Administrative Appeals Tribunal for a review of ASIC’s decision on 13 May 2011 and subsequently withdrew his application on 12 August 2011. The banning took effect from 8 April 2011.

ASIC announced the decision on 20 September.

Paragraph 920A(1)(c) of the Corporations Act provides that ASIC may make a banning order against a person if the person is convicted of fraud. If it does, as noted above, the ban must be permanent.
Subsection 920A(3) of the Corporations Act provides that ASIC is not required to give a person an opportunity to appear at a hearing and make submissions before making a banning order against the person where the ground for making the banning order is that the person has been convicted of serious fraud.