Turfed MFAA broker banned by ASIC

by Adam Smith06 Jun 2012

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.


  • by ozboy 6/06/2012 9:58:41 AM

    This is great news it's nice to see ASIC out there doing this I just have to wonder why it took 6 months from him being expelled by the MFAA (after being on suspension since 2009...what does that really mean!?). Good work but a little more haste would not go astray after all Mr Naylor is constantly talking to all and sundry at ASIC so did he fail to mention this?

  • by Peter 6/06/2012 10:05:12 AM

    its good the industry is being regulated but I'm sure all other brokers with years of experience and knowledge have better things to do than to complete CPD points and the tedious requirements of Credit Licencing. We're trying to run a business, not a compliance workshop.

  • by Country Broker 6/06/2012 10:51:23 AM

    The requirments to comply with the annual compliance certificates for a licenced broker ARE NOT difficult and are really easy to understand , it is good to see that ASIC have acted, the slow reaction by the MFAA is understandable, as they need to check out all the circumstances before taking the action they did, I would have preferred to see that happen a little quicker .
    This serves as notice to all the cowboys out there, you can no longer sleep well at night!