The ASIC banning of Victorian broker Ravind Prasad is a warning to the cowboys of the industry, say brokers: "You can no longer sleep well at night".
Yesterday, Australian Broker reported that ASIC had banned Ravind Prasad, who had been formerly expelled by the MFAA and had his accreditation cancelled by Choice and ANZ.
His offence? Prasad had failed to let ASIC in on these previous censures. Brokers were impressed by ASIC's action, though some said it may have taken too long for the regulator to move.
"This is great news, it's nice to see ASIC out there doing this, I just have to wonder why it took six months from him being expelled by the MFAA," Ozboy wrote on the Australian Broker Online forum.
"It is good to see that ASIC have acted. I would have preferred to see that happen a little quicker," said Country Broker.
"The question has to be asked: if this bloke wasn't good enough to be a Choice or ANZ broker and was expelled by the MFAA why let him back at all?," Tim asked.
Stephen Dinte raised the question of whether it was still too easy for cowboys to enter the industry.
"This story highlights the fact that it is remains too easy for a person with limited knowledge and experience to gain acceptance by an aggregator, by our industry body and then be granted accreditation by lenders. It is the drive by these groups for income (greed) that allows this to occur. Nothing has changed during all my years as a broker, and I certainly don't expect that things will change in the future."
It was Country Broker who threw down the gauntlet to any remaining cowboys. "This serves as notice to all the cowboys out there, you can no longer sleep well at night!" he said.
Turfed MFAA broker banned by ASIC