Wednesday 20 September 2006 LAWFUEL – Legal News Australia – The Australian Securities and Investments Commission (ASIC) has banned Mr Dennis Murvan Gentry, of Collingwood, Victoria, from providing financial services for five years. ASIC banned Mr Gentry after finding that he had not complied with financial services laws and that there was reason to believe he would not comply with financial services laws in the future.
ASIC found that Mr Gentry engaged in dishonest and misleading or deceptive conduct in relation to a financial product and financial service between June 2003 and September 2004. During this period Mr Gentry had been operating as an insurance broker and working for several insurance broking businesses.
His dishonest conduct related to the purported issuing of Builders’ Warranty Insurance (BWI) by the New Zealand-based insurer, Contractor’s Bonding Limited (CBL).
ASIC formed the view that: • Mr Gentry issued false certificates of insurance to clients Tenth Zital, Emval Pty Ltd and Como Constructions Pty Ltd without CBL’s consent; • the persons to whom the certificates were issued assumed that the certificates were valid, afforded insurance protection and undertook building on that basis; and • Mr Gentry held $14,135 on trust for the benefit of Tenth Zital, to be paid to CBL, or returned to Tenth Zital, however he used the monies for other purposes.
Mr Gentry has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision. Background Victorian legislation requires that registered builders of domestic dwellings must have BWI to obtain a building permit.
For builders to become eligible for BWI they must obtain a letter of eligibility from an insurer, who will first assess the financial and historical information provided by the builder to the insurer. The Building Commission requires all registered builders to obtain and provide a letter of eligibility as a condition of their registration. During this twelve-month eligibility period, the builder is required to make an insurance application for each new project they commence. For further information contact: Allen Turton Deputy Executive Director, Enforcement Telephone: 02 9911 2338 Mobile: 0411 549 236 Danielle Huck ASIC Media Unit Telephone: 03 9280 3407 Mobile: 0417 540 769