ASIC issues warning to licensees

Staff Reporter

The Australian Securities and Investments Commission has said it will come down hard on dodgy credit providers.

Since July 2010, the industry watchdog has received almost 2,500 complaints in relation to credit matters.

From those complaints more than 100 investigations have been launched, and five credit registrations or licenses have been suspended.

ASIC commissioner Peter Boxall said this result was very pleasing considering the amount of businesses that have been granted credit licenses.

In the six months since licensing was formally introduced, the industry watchdog has licensed 6,081 businesses.

Dr Boxall said it was a successful and smooth process, which underlined the advantages that a fully online process brings to a major licensing effort.

Of course, not all businesses managed to pass muster with ASIC.

Dr Boxall said ASIC formally refused four licence applications; imposed additional compliance conditions on 11 licences and declined around 400 applications because they were incomplete or inadequate.