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ASIC bans broker for breaking credit rules

Reporter 4 minute read

The regulator has banned a Sydney finance broker from engaging in credit activities for three years and cancelled her Australian credit licence.

An ASIC investigation found that Siv Lim of Cabramatta had arranged credit for customers of a Parramatta car dealership.

While working as an independent contractor for Betar Prestige Cars – trading as Audi Parramatta – Ms Lim submitted loan applications to Volkswagen Financial Services on behalf of Betar where Betar was not authorised to do so, according to ASIC.

Betar relies on an exemption to the obligation to hold an Australian credit licence where it has supplied the vehicle from its own stock, ASIC said.

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ASIC’s decision to ban Ms Lim was based on concerns that she was assisting customers to take out finance in circumstances where Betar had not sold the vehicle to the customer, but instead the vehicle had been sold by an unrelated car dealership or by a private seller.

Another concern was that the customer was refinancing a vehicle which they had previously purchased from either Betar or an unrelated car dealership.

ASIC found that as an independent contractor holding an Australian credit licence, Ms Lim knew the limitations of the credit she could provide under the point-of-sale exemption. She was obliged to ensure that the services she provided on behalf of Betar were within the law.

“Those offering credit under an exemption to hold an Australian credit licence must adhere to the bounds of the exemption,” ASIC deputy chairman Peter Kell said.

“ASIC will act against those who fail in this regard.”

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[Related: Victorian broker loses credit licence]

 

 

 

ASIC bans broker for breaking credit rules
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