A Victorian mortgage broker has been forbidden from engaging in credit activities for five years and has had her company’s Australian credit licence cancelled, after ASIC deemed her unfit.
Meenakshi Devi Callychurn of Maribyrnong, Victoria, is the sole director of Unique Mortgage Services and the sole key person and fit and proper person under UMS' credit licence. UMS was formerly owned and operated by Rudy Frugtniet, who was permanently banned from engaging in credit activities by ASIC in July.
However, ASIC also found that Callychurn failed to actively engage in the operations of the business and failed to meet the standards expected in the roles of sole director, key person and fit and proper person. This made her unfit to engage in credit activities.
As result of ASIC's findings in relation to Callychurn, ASIC also cancelled UMS' credit licence. In the circumstances, ASIC had reason to believe that UMS was likely to contravene the credit legislation. Further, the banning of Callychurn means that there is no one to carry on the business and to ensure UMS can meet its obligations under the National Credit Act.
“ASIC expects those engaging in credit activities to have the requisite competence and knowledge and to act with integrity. Those who fail in this regard will be removed from the industry,” ASICS’s deputy chairman, Peter Kell said.
Callychurn does have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.