An ASIC statement today confirmed that the Administrative Appeals Tribunal (AAT) has affirmed ASIC's decision to cancel the Australian credit licence of Unique Mortgage Services Pty Ltd (UMS). In addition, the AAT has varied ASIC's banning of Ms Meenakshi Callychurn, a former Victorian finance broker, from engaging in credit activities.
ASIC banned Ms Callychurn from engaging in credit activities in March 2015 for a period of five years and cancelled the Australian Credit Licence of UMS. The AAT today varied Ms Callychurn's banning from a period of five years to four years.
In affirming ASIC's decision, the AAT found Ms Callychurn had contravened the NCCP twice in relation to Annual Compliance Certificates of UMS.
The AAT found also Ms Callychurn had demonstrated a pattern of behaviour which was not consistent with those that would be expected of a “fit and proper person”.
UMS was formerly owned and operated by Mr Rudy Frugtniet, who was permanently banned from engaging in credit activities by ASIC in July 2014.
On 20 March 2015, when ASIC first announced the cancelation of UMS’ credit licence and Ms Callychurn’s five-year ban, it was noted that the corporate regulator “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.”
“ASIC expects those engaging in credit activities to have the requisite competence and knowledge and to act with integrity,” ASIC deputy chairman Peter Kell said at the time.
“Those who fail in this regard will be removed from the industry.”
[Related: Victorian broker loses credit licence]