ASIC has banned yet another broker, alleging false and misleading conduct in relation to more than $4m of loans.
The regulator has announced it has dealt Sydney broker Arthur Sperling a five-year ban and cancelled his ACL. An ASIC investigation between October 2010 and November 2011 found Sperling submitted 10 home loan applications to four lenders that the watchdog alleges contained false and misleading information. The loans totalled $4.132m.
ASIC said the loan applications contained a number of instances in which borrowers were describedd as working full-time, when in reality the borrowers either did not work for the nominated employer or worked only on a contract or casual basis.
The regulator said Sperling failed to independently verify income and employment details before submitting the applications.
"In doing so, he has been reckless as to whether the income and employment details supplied to the lenders were false or misleading," ASIC said.
ASIC said it cancelled Sperling's licence "on the basis that he is likely to continue to contravene his obligations as the holder of a credit licence".
"Failing to verify information submitted in loan applications blatantly disregards the fundamental principles of engaging in credit activities. Those who do not adhere to their obligations will be removed from the industry," ASIC commissioner Peter Kell said.