Broker banned after ASIC crackdown5379 people have read this article
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| Tuesday, 20 December 2011 | |||
Jessica Darnbrough One year after NCCP came into play ASIC has made it clear that brokers who break the rules will lose their licence. Yesterday, the industry regulator cancelled the credit licence of Melbourne-based Star Alliance Financial Services and banned its director following an investigation. Prasanna Indrajith Wijesekara, of South Morang, Victoria was permanently banned from engaging in credit activities following concerns over his conduct as a mortgage broker in 2010 and certain statements made in his company's credit licence application. According to a statement by ASIC, Star Alliance's credit licence application failed to state that AMP Bank had cancelled Mr Wijesekara's accreditation as a broker on 13 May 2010. In addition, ASIC had reason to believe that Mr Wijesekara was not a fit and proper person to engage in credit activities on the basis that he submitted false or misleading information to ASIC; and he provided falsified documents and false or misleading information to AMP Bank in support of a loan application in 2010. "These outcomes demonstrate ASIC's ongoing commitment to ensuring that only those who meet requisite standards of honesty and integrity are permitted to participate in the consumer credit industry," ASIC commissioner Peter Kell said Mr Wijesekara and Star Alliance have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decisions.
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Comments
we need the MFAA so that the banks can take their piece of cake as well, as they do through out the whole industry. When you look at how much brokers contribute to the industry, commercial, Mortgage loan , personal, asset finance ,car finance. We service our clients, have better knowledge on diverse Bank Products than the banks, why does it seem that they are making it hard for brokers to survive.
I agree Asic is the main Body choice of MFAA or FBAA , FBAA standards are just as high if not better, and a good aggregator, some bigger aggregators take a cut , make sure they dont turn out like the MFAA , money for nothing. just my rant
I think being a member of a broker body is important and helps keep us all informed.
The ability to choose helps to keep the representative bodies on top of their game.
Third line forcing is in no one's interest, least of all the MFAA.
If the aggregators concerned want tougher compliance and a higher administrative burden than ASIC demand then let them be up front and put those requirements in the aggregator agreement while letting the member choose the body to join. This way, decisions will be made based on support and business relevance and everything is beautifully transparent.
Better to weed them out before they make headlines and give the industry a bad name me thinks.
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