Credit act comes into play
The National Consumer Credit Act was implemented for the first time after a Sydney director was ordered to pay a fine of $7500.
Nathan Elali, the sole director of former company EasyChoice Home Loans, advertised the company could provide credit (although it was unlicensed).
Elali, as sole director, was found guilty of knowingly contravening the National Consumer Credit Protection Act 2009, as the provision of home and investment property loans was advertised on the EasyChoice website for more than a year.
The advertising was only removed after court proceedings had commenced, despite numerous warnings by the Australian Securities and Investments Commission (ASIC) to remove it.
ASIC took over responsibility from the states and territories for regulating the Act, which prevents individuals or businesses from engaging in credit activities without holding a credit licence or being a representative of a credit licence holder.
Recommended for you
Proper recordkeeping has been described as the “mortar between the bricks” of the advice process and critical to an FSCP decision as an adviser is suspended for failures in this area.
There could be changes ahead for how ASIC requires licensees to handle conflicts of interest as the corporate regulator announces it will be meeting key stakeholders next year to update guidance.
As investors increasingly seek to embed ESG considerations in their portfolios, a specialist adviser has offered tips for financial planners who may feel overwhelmed in tackling these complex topics with clients.
Global investment consultancy bfinance is expanding into offering services for wealth managers as they seek advanced investment strategies for their clients.