Credit licence banned in ASIC’s targetting of dodgy operators
Same Day Money has had its credit licence cancelled while its director Lawrence James Sullivan has received a four-year ban on engaging in credit activities.
The Australian Securities and Investments Commission (ASIC) found the Cairns-based business, which provided mainly short-term credit to consumers nation-wide, and its director Sullivan were not fit and proper to engage in credit activities.
In June 2012, Sullivan was convicted for obstructing a Queensland Office of Fair Trading inspector and making a false or misleading statement in relation to the Consumer Credit (Queensland) Act. Same Day Money was also snared for the same offences on the same day.
The former director made false statements to ASIC on forms the company lodged with the regulator, including in regards to Same Day Money's Australian credit licence (ACL) annual compliance certificate.
ASIC said Sullivan lacked the knowledge, diligence, honesty, integrity and judgement to operate a credit business.
The company will cease trading on 20 March 2013 after it finalises certain credit activities, the regulator said.
ASIC commissioner Peter Kell said the decision to cancel the credit operator's licence was part of a broader focus on improving the standards of licensees.
"ASIC is committed to identifying instances of poor practice by those in the credit industry," he said.
"This action shows that when the required performance and compliance standards are not being met, we will not hesitate to remove individuals and entities from the industry."
Last month ASIC announced the introduction of a range of new credit obligations under the National Consumer Credit Protection Amendment (Enhancements) Act 2012 which were introduced from 1 March.
The reforms include remedies for unfair or dishonest conduct by credit providers and tighter rules on short-term credit contracts.
Sullivan and Same Day Money have the right to lodge an application with the Administrative Appeals Tribunal to review ASIC's decision.
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