ASIC intervention creates low doc test case
The Australian Securities and InvestmentsCommission (ASIC) has turned proceedings in the NSW Supreme Court into a test case with respect to the provision of low document loans.
The regulator announced on Friday that it had formally intervened in proceedings relating to the enforcement of low doc loans that concerned the conduct of the Streetwise Group of Companies, which had been subject to investigation by ASIC.
It said it had intervened pursuant to section 1330 of the Corporations Act in three proceedings commenced by Tonto Home Loans Australia Pty Ltd (now Firstmac Limited) and Permanent Trustee Company Ltd seeking to take possession of properties owned by former Streetwise borrowers.
In an announcement issued on Friday, ASIC said the cases provided “an appropriate vehicle to test the legal and regulatory framework that applies to enforcement action against borrowers by ‘low doc’ lenders where the conduct of an intermediary toward the borrowers is, or may be, in question".
ASIC said its intervention was based on public interest grounds to assist the court in relation to the construction and application of the Corporations Act and the ASIC Act.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
