Credit licence director banned for 10 years
The Australian Securities and Investments Commission (ASIC) has cancelled the Australian credit licence of Net Finance (Corp) Pty Ltd (Net Finance), and banned its director, Graham Tandy, from the credit industry for 10 years.
It comes as the corporate regulator found Brisbane's Net Finance did not provide credit activities honestly, fairly and efficiently.
Net Finance convinced a consumer to give a handwritten note when applying for a loan by falsely claiming the loan was for business purposes.
Net Finance also did not make the necessary inquiries and assessments, and obtained an inappropriate loan for a consumer due to which the consumer had to sell his home when he could not meet the loan requirements.
The company also broke the law by not providing credit guides, quotes and proposal disclosure documents to its clients.
Another employee who looked after day-to-day operations, John Murphy, faces an eight-year ban.
The company found Tandy and Murphy are unfit to participate in credit activities as they were found to be engaged in the breaches.
AUTHOR
Malavika Santhebennur
Recommended for you
A third private equity player has emerged in the bidding war to acquire Insignia Financial, rivalling Bain Capital and CC Capital.
The proportion of advisers working at a privately owned licensee rose to 78 per cent in the fourth quarter of 2024 as over 1,000 advisers left a diversified firm.
Advice around a client’s concessional contribution cap was the reason for the latest written direction by the Financial Services and Credit Panel.
The financial advice business has expanded its range of services with the introduction of Apt Wealth Legal Services to meet clients’ evolving needs in estate planning and family law.
