ASIC sanctions: “Brokers shouldn’t be so reckless”

by Caroline Dann18 Jul 2012

A leading industry figure has labelled the actions of two brokers suspended yesterday as “reckless.”

Greg Ashe, director of QED Risk Services, told Australian Broker Online ASIC was justified in suspended the licence of Almaza Souzie Boutros after she was convicted of serious fraud. 
“It’s a no brainer,” he said.
He added the second suspension, of brokerage Dean Mooney Pty Ltd for failure to obtain an ASIC-approved EDR membership, was less clear-cut.
“It’s a good example of the left hand not knowing what the right hand is doing. In big firms, a lack of communication can be its downfall. Someone forgets to renew the membership or tell colleagues that it’s up for renewal, and that’s when ASIC cracks down,” he said.
Phil Naylor, CEO of the Mortgage and Finance Association of Australia, told Australian Broker Online he was “amazed there are still some brokers who are not abiding by the now NCCP requirement.” 
“If the above two are examples of what ASIC is finding, there are no excuses for fraud or not being an EDR member and I would have thought brokers who are operating professionally should have no concerns from ASIC,” he said.
Ashe said lying to ASIC – if caught out – made matters even worse.
“It seems to be a big thing with ASIC. If you’re caught out, and lie about it, you’ll face harsher penalties. It’s much better to be transparent and open,” he said.
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