ASIC casts aggregator from industry for EDR error

by Caroline Dann09 Aug 2012

 

ASIC has cancelled the credit licence of Pump Financial Pty Limited, a Queensland aggregator and mortgage broker, after it failed to obtain an EDR membership.
 
The watchdog said Pump Financial's EDR membership was cancelled in January 2012 and never renewed.
 
It's the second time in a month ASIC has cancelled a credit licence due to EDR omissions.
 
Sydney brokerage Dean Mooney Pty Ltd was banned from engaging in credit activities after failing to renew its EDR licence last month.
 
Only two EDR schemes are approved by ASIC. Failure to hold membership to either is a serious offence, it said.
 
"ASIC will have no hesitation in cancelling the credit licence of those who do not hold membership in either of the ASIC approved schemes," said comissioner Greg Tanzer.
 
Related news:
 
 

 

COMMENTS

  • by Country Broker 8/08/2012 3:16:47 PM

    oUCH HOW MANY OTHER BROKERS ARE EFFECTED BY THIS, I AM REALLY GLAD I AHVE A FULL LICENCE.

  • by Patrick 8/08/2012 3:31:18 PM

    What happens to the credit reps under Pump?
    What happens to their existing trailers.
    There is a serious falwe in the current industry model. The actual loan writer (unless an employee) should be the primary owner of the relationship between the bank and the borrower. As with financial planning a broker should be able to move from one aggregator to another and a bulk transfer of their existing book should be available. Proper competition between aggregators where a failure in service or competitive pricing can result in loss of income is an overdue necessity.

  • by Anti - Spin 8/08/2012 4:42:25 PM

    Good one Patrick....I would move aggregator tomorrow if I could take the trail