A broker who was stripped of his accreditation by Choice and ANZ and expelled by the MFAA has now been dealt a three-year ban by ASIC.
Victorian broker Ravind Prasad was handed the ban due to misleading statements on his licence application. ASIC said Prasad failed to divulge that his accreditation had been terminated in 2008 by Choice Aggregation Services and ANZ. The regulator claimed Prasad also failed to "clearly state" that the MFAA had previously disciplined him by requiring him to complete a mentoring program.
MFAA records show Prasad was expelled in December 2011, as well as having been suspended in 2009. In addition to the three-year ban, ASIC has also cancelled the credit licence of Prasad's business, Jazzrozz Pty Ltd.
The regulator claimed an investigation found Prasad's business "failed to comply with general conduct requirements" in failing to be a member of an EDR scheme, and not lodging an annual compliance certificate by its due date.
"ASIC found that Mr Prasad’s lack of skill and knowledge in complying with legal and regulatory obligations highlighted his inability to carry out the responsibilities associated with the role of director of an Australian credit licensee," the watchdog said in a statement.
ASIC commissioner Peter Kell said the banning highlights the action ASIC will take against non-compliant brokers.
"This outcome shows the importance of credit licensees being aware of their obligations under the credit laws and emphasises the consequences of providing false or misleading information to ASIC," Kell said.