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Adelaide broker loses credit licenses

by Staff reporter4 minute read
broker empty pockets asic cancelled credit licences of emparo enterprises quick cash advance

ASIC has cancelled the Australian credit licences held by two companies associated with an Adelaide broker.

The regulator yesterday announced that is has cancelled the ACL's of Emparo Enterprises and Quick Cash Advance after it was found they failed to hold membership of an approved external dispute resolution (EDR) scheme.

On 1 June 2016, the Credit and Investments Ombudsman (CIO) cancelled Emparo Enterprises’ EDR membership due to concerns around “serious misconduct in relation to the credit activities it engaged in”, according to an ASIC statement.

On 8 August 2016, CIO also cancelled Quick Cash Advance’s EDR membership due to similar concerns.

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Under the National Credit Act, credit licensees are required to be a member of an ASIC-approved EDR scheme.

“Licensees need to co-operate with EDR schemes. EDR schemes provide consumers with a free and simple alternative to resolving complaints rather than having to go through the court system, and are a key element of the credit regime,” ASIC commissioner Peter Kell said.

Emparo Enterprises and Quick Cash Advance have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decisions.

On 22 February 2011, Emparo Enterprises was granted an Australian credit licence to provide credit assistance in relation to credit contracts and consumer leases.

On 21 October 2011, Quick Cash Advance was granted a credit licence to provide credit under credit contracts.

ASIC notes that Mr Jarrod Tuendemann is the sole director of both Emparo Enterprises and Quick Cash Advance.

The Emparo Enterprises homepage shows the company offered home loans and real estate and property management services. In addition to his role as CEO of Emparo Group, Mr Tuendemann is listed as a “finance broker/micro lender/private lender/property mentor and investor”.

Both credit licences were cancelled with an effective date of 22 March 2017.

[Related: The bankrupt broker: what happens to their commission?]

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James Mitchell

James Mitchell

AUTHOR

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

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