ASIC has permanently banned a Melbourne-based mortgage broker from engaging in credit activities and cancelled his company's Australian credit licence.
ASIC made the decision to ban John Cilmi of Northern Securities (Victoria) Pty Ltd (NSV) after an investigation found that he was reckless when he submitted false or misleading documents to secure three separate loan applications, including bank and income documents.
ASIC found that he “lacked an enquiring mind and failed to be vigilant in the exercise of his duties by submitting false documents in support of loan applications for five customers”.
ASIC said Mr Cilmi failed to ensure that NSV complied with its Australian credit licence conditions by not producing evidence demonstrating the completion of a Certificate IV in Financial Services (Finances/Mortgage Broking) by 1 July 2014 and at least 20 hours of continuing professional development for the years 2011 to 2014.
In addition, ASIC found that Mr Cilmi failed to ensure NSV kept records of all relevant client material including loan files in respect of two clients and ensuring that NSV maintained breach and training registers and had internal dispute resolution procedures in place between December 2010 to February 2015.
The corporate watchdog said Mr Cilmi was uncertain as to what was required of him as a key person on the credit licence and had "little concept of compliance and training requirements for credit assistance providers".
ASIC also cancelled the credit licence of Mr Cilmi's company NSV after finding it failed to carry out its general conduct obligations under the National Consumer Credit Protection Act 2009.
"ASIC banned Mr Cilmi after finding that the management of his credit practice was severely wanting,” ASIC deputy chairman Peter Kell said.
“This case demonstrates the significant penalties that can be imposed against those who demonstrate a lack of understanding and regard for compliance.”
Mr Cilmi and NSV have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decisions.