ASIC targets unlicensed creditors
The Australian Securities and Investments Commission (ASIC) will target unlicensed credit providers in a surveillance campaign that begins this September.
The campaign is designed to snare unlicensed entities engaging in consumer credit activities by identifying traders who have withdrawn an application for an Australian credit licence or had their application refused, according to ASIC Commissioner Peter Kell.
"By applying for a licence, they indicated an intention to engage in credit activities. Unless the trader is an authorised credit representative, or subsequently obtains an Australian credit licence, they cannot engage in credit activities," he said.
He said credit licence cheats could face criminal prosecution or be banned from obtaining a credit licence.
"We want to ensure consumers feel confident when dealing with lenders, brokers and other credit providers and one way to do this is by weeding out players who aren't playing by the rules," Kell said.
The campaign will run from September to December this year and extends on ASIC's work in the credit space. In 2010, ASIC checked credit licence registrations and in 2011, checked the activities of individuals who had been refused a licence.
"That program was aimed at making sure industry players were aware of their new obligations. This year is about us taking enforcement action if we identify unlicensed activity," Kell said.
Recommended for you
Far too few wealth managers are capitalising on the opportunity presented by disruptive technology to deliver personalised investment solutions to the mass affluent demographic, according to PwC.
With over half of advisers using managed accounts, HUB24’s head of managed portfolios has unpacked the benefits driving their usage and how they can be leveraged by advice practices.
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
ASX-listed platforms HUB24, Netwealth, and Praemium have used their AGMs to detail how they are using artificial intelligence to improve their processes and the innovative opportunities it presents.
