Victorian broker loses credit licence

ASIC's decision to ban Ms Callychurn was based on concerns including that Ms Callychurn submitted two Annual Compliance Certificates for UMS to ASIC with false or misleading responses; allowed Mr Frugtniet to continue to exercise control over UMS; was not engaged in operating the business and attending to duties associated with the UMS credit licence; did not understand her responsibilities in relation to the UMS credit licence; and showed a lack of preparedness to engage with ASIC.

ASIC found that Ms Callychurn failed to actively engage in the operations of the business and failed to meet the standards expected of the roles of sole director, key person and fit and proper person. This made her unfit to engage in credit activities.

As result of ASIC's findings in relation to Ms Callychurn, ASIC also cancelled UMS' credit licence. In the circumstances, ASIC had reason to believe that UMS was likely to contravene the credit legislation. Further, the banning of Ms Callychurn means that there is no one to carry on the business and to ensure UMS can meet its obligations under the National Credit Act.

“ASIC expects those engaging in credit activities to have the requisite competence and knowledge and to act with integrity.

“Those who fail in this regard will be removed from the industry,” ASIC deputy chairman Peter Kell said.

Ms Callychurn has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.

[Related: ASIC bans Charterhill boss for two years]