ASIC targets unregistered credit activities

australian securities and investments commission

24 September 2010
| By Milana Pokrajac |

The Australian Securities and Investments Commission (ASIC) has begun nationwide surveillance to detect unregistered businesses and individuals engaging in credit activities.

Engaging in credit activities without being registered with ASIC has been an offence since 1 July this year under the National Consumer Credit Protection Act.

More than 14,000 people and businesses registered with ASIC before 30 June, 2010, as a precursor to applying for a credit licence. The regulator confirmed the licensing is now underway, with almost 300 licences already issued.

ASIC Commissioner Peter Boxall said ASIC was most likely to pursue prosecutions where firms or people persisted in engaging in credit activities without being registered or licensed.

“All indications to date are that the new regime enjoys widespread support from people working in the credit industry, and that people and businesses who have registered welcome action by ASIC to deter non-registered businesses,” Boxall said.

Maximum criminal penalties for breaching the National Consumer Credit Protection Act 2009 are $22,000 for individuals and $110,000 for corporations, or imprisonment.

Civil penalties are up to $220,000 for individuals and $1.1 million for corporations, partnerships or multiple trustees.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

3 days 2 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 week ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 5 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

3 weeks ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

6 days 6 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

5 days 9 hours ago