ASIC has stated the number of credit providers it's had to take action against is "unacceptably high" after banning a Sydney mortgage broker.
The regulator announced it has handed a three-year ban to former Sydney broker and real estate agent Hyuk Hwang after an investigation revealed he was involved in submitting false documents to Westpac.
The ASIC investigation found Hwang allowed another person to access his online broker system in order to submit a loan application and documents to Westpac. The regulator also claimed that Hwang included a letter of employment from another business he owned which falsely claimed the borrower was an employee of the business.
"Mr. Hwang was aware the application and the letter contained false information at the time they were submitted to Westpac," ASIC said.
ASIC deputy chairman Peter Kell
said the watchdog had taken action against eight credit providers in the last three months, resulting in two convictions, three permanent bannings and three bannings totalling 11 years.
"This number is unacceptably high. ASIC will not hesitate to take action where we encounter deliberate breaches, serious misconduct or significant risk of consumer detriment," Kell said.
ASIC also handed a ban to the director of a Melbourne company over $3.2m worth of home loan applications containing false or misleading information. The regulator gave a three-year ban to Anthony Bergin, saying he failed to adequately supervise and monitor the actions of his staff at Equity Financial Management.
"The role of a key person and responsible manager is central to the proper conduct of a credit business. If you do not demonstrate the highest standards of competence and diligence in this important role you will be banned from the credit industry," Kell said.