ASIC bans NSW finance broker

Mr Raju has been operating his brokerage business for more than 30 years, according to his LinkedIn profile.

According to ASIC, Mr Raju failed to disclose that he had been the subject of disciplinary action by the Tax Practitioners Board, among other matters.

ASIC found that Mr Raju contravened the National Consumer Credit Protection Act 2009 (Credit Act) and issued a banning order prohibiting him from engaging in credit activities for two years.

Additionally, ASIC found that RRA contravened the Credit Act by providing untruthful answers on its annual compliance certificate.

“Given the findings about Mr Raju, RRA does not have a fit and proper person as its officer as required by the Credit Act,” ASIC said.

The RRA credit licence has no effect while it remains suspended.

Mr Raju’s prohibition against engaging in credit activities and RRA’s license suspension took effect on 7 December 2023.

Mr Raju and RRA have the right to appeal to the Administrative Appeals Tribunal to review ASIC’s decisions.

ASIC is targeting car finance brokers

Meanwhile, brokers and lenders are among the groups that will be under the financial regulator’s enforcement priorities next year.

During ASIC’s Annual Forum 2023, ASIC deputy chair Sarah Court highlighted one of its new enforcement priorities for 2024: “the provision of used car finance to vulnerable consumers, which includes misconduct by brokers, car dealers, and finance companies.”

She further emphasised that compliance with financial hardship obligations would also be a focal point for 2024, following “the action taken against Westpac earlier this year” after the major lender failed to process 229 hardship applications within the required time frame.

Ms Court explained: “This is because we recognise the continuing pressure on consumers in response to cost-of-living pressures.”

[Related: ASIC sues payday lenders]