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Another Credit Licence Cancelled

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Another Credit Licence Cancelled


March 23, 2015 12:20pm | ASIC News

ASIC announced on Friday that another Australian Credit Licence has been cancelled, including the banning of an industry participant.

The reason for the banning and credit licence cancellation was due to a new Responsible Manager being put in place in the business so it could keep operating, as the former Responsible Manager was permanently banned by ASIC in July 2014. The new RM wasn’t performing the functions of an RM, with the former RM still in charge.

The learnings from this are:

“Shadow’ Directors won’t cut. The Responsible Manager needs to be the person responsible for the day-to-day supervision of the licensed activity that is being performed. This means that they are responsible for all activity, need to know what is going on and to ensure all the licence obligations are being met – this includes documenting proper compliance testing of the business!!

Once you’re on ASICs radar, you stay there. They are continually watching credit licensees. We have seen a number of cases where a Licensee is had up for some kind of scrutiny and ASIC follows up to ensure that the substance of their direction is followed through.

Overall, we find it disappointing that there are still players in the industry that just don’t get it.

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