ASIC has permanently banned a former South Australian company director from providing financial services after he dishonestly obtained more than $400,000 from clients over a two-year period.

The action against Craig John Horsell, of Adelaide, follows an ASIC investigation into his time as an employee and a director of insurance businesses Horsell International Pty Ltd (HIPL) and PSC Horsell Insurance Brokers Pty Ltd (PHIB) between 22 January 2007 and 23 July 2010.

ASIC’s investigation found that between 7 September 2007 and 4 May 2010 Mr Horsell acted dishonestly and in breach of financial services laws when he authorised the transfers of 72 insurance premium payments from clients totalling $409,635.24 into his bank account but did not purchase the insurance products as requested by the clients.

Mr Horsell’s actions could have had a detrimental impact on a client if an event giving rise to a loss had occurred while they were uninsured.

ASIC banned Mr Horsell in order to protect the public, deter similar conduct and maintain consumer confidence in the financial services sector.

HIPL and/or PHIB have recovered all outstanding funds from Mr Horsell and all insurance covers that were suspected of either being fabricated or compromised by Mr Horsell’s conduct have been placed or reinstated so that no clients have faced any financial losses.

Mr Horsell’s conduct was brought to ASIC’s attention by HIPL which cooperated fully with ASIC’s investigation.

Mr Horsell has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.