ASIC cancels credit licences over AFCA failures and compliance breaches

The Australian Securities and Investments Commission (ASIC) has taken action against eight credit licensees – cancelling seven licences and suspending one – for failing to maintain mandatory membership with the Australian Financial Complaints Authority (AFCA). 

AFCA membership is a legal requirement for credit licence holders and gives consumers access to an independent, free dispute resolution service when internal complaint handling fails. 

ASIC’s powers to cancel credit licences stem from section 55 of the National Consumer Credit Protection Act 2009 (Credit Act), which allows licence cancellation where general conduct obligations – such as AFCA membership and compliance with credit legislation – are breached. 

Eight licensees lose authorisation in breach crackdown 

Between March 24 and July 11, 2025, ASIC cancelled or suspended the following credit licences: 

• Capital House – licence cancelled on July 11 
• David Anthony Ross – licence suspended on June 4 
• Glove Finance – licence cancelled on March 25 
• JTan – licence cancelled on March 31 
• M&H – licence cancelled on July 3 
• Oz Finance Professional – licence cancelled on April 2 
• Peppermint Loans – licence cancelled on June 27 
• Sheree Nicole Becker – licence cancelled on June 27 

AFCA and ASIC coordinate enforcement 

ASIC stated that it works closely with AFCA to monitor ongoing compliance and take swift action against breaches. 

“AFCA works with ASIC to identify credit licence holders that do not maintain AFCA membership,” the corporate watchdog said in a media release. “If an entity is expelled from the scheme or requests to withdraw membership, AFCA must notify ASIC.” 

Non-compliance included broader breaches 

While failure to maintain AFCA membership was a common trigger, ASIC noted that some licensees had additional compliance failures. 

“The licensees have varyingly: 

• failed to be a member of AFCA 
• failed to lodge annual compliance certificates on time 
• failed to pay industry funding levies owed to ASIC 
• ceased to engage in credit activities.” 

Failure to lodge an Annual Compliance Certificate (ACC) breaches section 53(1) of the Credit Act, which is defined as credit legislation under section 5. Additionally, under section 54(1)(d), ASIC may cancel a licence if levies or related late payment penalties remain unpaid for 12 months after their due date. 

Right to review still applies 

ASIC, which is currently seeking industry feedback on its proposal to remake five legislative instruments that provide financial reporting relief, confirmed that the impacted entities have recourse to appeal the decision: 

“The licensees have the right to appeal to the Administrative Review Tribunal for a review of ASIC’s decision.” 

What brokers should know 

Mortgage brokers should ensure their aggregator, partners, or credit licence holders remain active AFCA members and compliant with ASIC’s annual obligations.  

Losing AFCA membership or failing to meet Credit Act requirements can lead to swift cancellation or suspension, potentially halting a business’s ability to operate.