ASIC does not target brokers, says Kell

by Calida Smylie15 May 2014
Brokers should not be upset when their profession is splashed across headlines for all the wrong reasons because of rogue members, ASIC deputy chair Peter Kell said.

In a speech to the MFAA national conference on the Gold Coast yesterday, Kell said ASIC does not target brokers as some think, but instead removes brokers from the industry for good reason.

“There has been some suggestion in the industry that, in relation to loan fraud, ASIC is targeting finance brokers.

“[But] those we remove from the market, or criminally prosecute, have been the subject of these actions for good reason… we will take action regardless of who breaches the law.”

Cracking down helps consumer confidence that the market is being regulated and a fairer environment for those that are doing the right thing, he said.

“We have no tolerance for loan fraud involving false loan applications and related documents, and we have had a campaign to identify and crack down on misconduct of this sort.”

ASIC has banned 42 people – 19 permanently – since the introduction of the National Credit Act. Almost half of these bans are from people submitting falsified documents to lenders.

“We have also recently been successful in obtaining several criminal convictions for loan fraud, which indicates the seriousness of this activity. There are more such matters in the pipeline, as we send the message that loan fraud is unacceptable,” Kell said.

He thanked brokers and the MFAA for identifying dishonest operators, as many of the bans are from the industry alerting ASIC to inappropriate behavior.

MORE:

Mortgage company's AFSL cancelled after financial obligations breached

Credit representative banned for false home loan documents 

Banned former mortgage broker granted repr
ieve

COMMENTS

  • by Clarke Kent 15/05/2014 9:00:55 AM

    What about the fraud committed by the sales personnel in the Bank's who are quietly removed from their positions without any fanfare?. Fraudulent documentation is quite a common factor to dismissal and then Bank settles the matter privately under confidential agreement.

  • by Steve McClure 15/05/2014 10:26:13 AM

    Well said. One reason our market share is increasing is because consumers have more confidence in us. We can disagree on aspects of regulation, but ASIC assists us to maintain integrity.