Sydney broker receives fine for Credit Act breach
A Sydney-based mortgage broker has received a $27,500 fine for advertising credit services it was not licensed to provide, according to the Australian Securities and Investments Commission (ASIC).
ASIC has served the company with a credit infringement notice, the first notice of this kind to be issued since the introduction of the National Consumer Credit Protection Act in July 2010.
The regulator alleged the company continued to advertise credit services on its website despite being notified by ASIC that it could be in breach of the NCCP Act because the company was not registered, authorised or licensed to provide credit services.
ASIC chairman Greg Medcraft said where the regulator identifies the possible breach of the consumer credit laws of this type, the first step is to require the company to take action and ensure they comply.
“If the company fails to comply, the credit infringement notice regime allows ASIC to deal with certain civil penalty contraventions by issuing an infringement notice for payment of a penalty as an alternative to commencing civil penalty proceedings,” Medcraft said.
The mortgage broker would be required to pay the fine within 28 days from the infringement notice issue date.
If the company decided not to pay the penalty – which the regulator said would not be an admission of guilt – ASIC could commence civil proceedings against the company for a maximum penalty of $1.1 million.
Medcraft added mortgage brokers were the gatekeepers between consumers and lenders and that they had an obligation to act in accordance with the law.
Recommended for you
With Insignia shares up 32 per cent in the past month and the firm enacting a five-year growth plan, Morningstar believes the two recent acquisition bids from private equity firms demonstrate the company is undervalued.
As financial advisers enter the new year, Assured Support shares eight strategies to help advice businesses thrive through focused and consistent planning.
Insignia Financial has received a takeover bid from a second US firm, topping Bain Capital’s offer with a bid of $4.30 per share.
As the year comes to an end, Money Management takes a look at the biggest announcements that shocked the financial advice industry in 2024.
