ASIC has cancelled 21 Australian credit score licences for failing to be a member of the Australian Monetary Complaints Authority (AFCA).
By legislation, Australian credit score licence holders are required to be a member of AFCA. AFCA membership provides shoppers entry to a free, truthful and impartial dispute decision scheme if a grievance will not be correctly thought-about or resolved by a credit score licensee.
AFCA offers shoppers and small companies with a substitute for tribunals and courts to resolve complaints. ASIC mentioned it labored with AFCA to establish monetary companies licensees and credit score licensees that don’t adjust to their obligation to keep up their AFCA membership. The place an entity fails to conform, ASIC will take motion to cancel or droop their credit score licence.
Within the interval April 1, 2022, to December 9, 2022, ASIC cancelled the next credit score licences:
- Umziwam Pty Ltd, licence cancelled 14 April 2022
- Paul Michael Motors Pty Ltd, licence cancelled 2 June 2022
- Firstsource Benefit LLC, licence cancelled 9 June 2022
- Underwood Automotive Finance Pty Ltd, licence cancelled 20 June 2022
- Asia Pacific Finance Pty Ltd, licence cancelled 22 June 2022
- Fiduciary Funds Administration Pty Ltd, licence cancelled 7 July 2022
- Nikki Jayne Bedggood-Forsyth, licence cancelled 12 July 2022
- First Mortgage Dwelling Mortgage Pty Ltd, licence cancelled 13 July 2022
- Sooner Options Pty Ltd, licence cancelled 19 July 2022
- Covesta Finance Pty Ltd, licence suspended 19 July 2022
- Thy Mai Nguyen, licence cancelled 9 August 2022
- Epping PFC Pty Ltd, licence cancelled 12 August 2022
- Capital-West Finance Pty Ltd, licence cancelled 23 August 2022
- Deposit Store Pty Ltd, licence cancelled 24 August 2022
- Cani Administration Pty Ltd, licence cancelled 25 August 2022
- W. Day and H.R El-Hassan, licence cancelled 31 August 2022
- Puyi Finance, licence cancelled 4 October 2022
- IPLAN Monetary Options Pty Ltd, licence cancelled 9 November 2022
- Australian Mortgage Companions Pty Ltd, licence cancelled 9 November 2022
- Kingston Capital Companies Australia Pty Ltd, licence cancelled 9 December 2022
- Thi My Hien Dang, licence cancelled 9 December 2022
Meantime, ASIC additionally introduced on December 16 that it had banned two Gold Coast-based monetary service suppliers and cancelled the Australian monetary companies licence of Nationwide Recommendation Options Pty Ltd (Nationwide Recommendation Options). ASIC additionally banned the 2 Gold Coast-based accountable managers Gail Glasby and Paul Carcallas from offering monetary companies for a interval of 10 years.
ASIC mentioned it had cancelled the AFS licence of Nationwide Recommendation Options as a result of it failed to make sure that monetary companies coated by the licence have been offered effectively, truthfully and pretty. Nationwide Recommendation Options adopted a “layered recommendation” technique whereby the licensee separated the recommendation into pre-determined subjects, whatever the consumer’s private circumstances, targets or recommendation wants.
This technique was discovered to actively impede monetary advisers from complying with the monetary companies legal guidelines as shoppers have been supplied with costly and templated recommendation that was not acceptable for his or her private circumstances, ASIC mentioned.
ASIC additionally cancelled the AFS licence of VIG Asset Administration Pty Ltd (VIG) efficient December 8.
The licence authorised VIG to deal in pursuits in managed funding schemes to wholesale shoppers.
ASIC cancelled the licence as a result of receivers and managers have been appointed to the property of VIG. Philip Campbell-Wilson and Matthew Byrnes of Grant Thornton have been appointed as joint receivers and managers on June 25, 2020.
VIG can apply to the Administrative Appeals Tribunal for a evaluation of ASIC’s determination.