ASIC has cancelled 21 Australian credit licences for failing to be a member of the Australian Financial Complaints Authority (AFCA).
By law, Australian credit licence holders are required to be a member of AFCA. AFCA membership gives consumers access to a free, fair and independent dispute resolution scheme if a complaint is not properly considered or resolved by a credit licensee.
AFCA provides consumers and small businesses with an alternative to tribunals and courts to resolve complaints. ASIC said it worked with AFCA to identify financial services licensees and credit licensees that do not comply with their obligation to maintain their AFCA membership. Where an entity fails to comply, ASIC will take action to cancel or suspend their credit licence.
In the period April 1, 2022, to December 9, 2022, ASIC cancelled the following credit licences:
- Umziwam Pty Ltd, licence cancelled 14 April 2022
- Paul Michael Motors Pty Ltd, licence cancelled 2 June 2022
- Firstsource Advantage LLC, licence cancelled 9 June 2022
- Underwood Car Finance Pty Ltd, licence cancelled 20 June 2022
- Asia Pacific Finance Pty Ltd, licence cancelled 22 June 2022
- Fiduciary Funds Management Pty Ltd, licence cancelled 7 July 2022
- Nikki Jayne Bedggood-Forsyth, licence cancelled 12 July 2022
- First Mortgage Home Loan Pty Ltd, licence cancelled 13 July 2022
- Sooner Solutions Pty Ltd, licence cancelled 19 July 2022
- Covesta Finance Pty Ltd, licence suspended 19 July 2022
- Thy Mai Nguyen, licence cancelled 9 August 2022
- Epping PFC Pty Ltd, licence cancelled 12 August 2022
- Capital-West Finance Pty Ltd, licence cancelled 23 August 2022
- Deposit Shop Pty Ltd, licence cancelled 24 August 2022
- Cani Management Pty Ltd, licence cancelled 25 August 2022
- W. Day and H.R El-Hassan, licence cancelled 31 August 2022
- Puyi Finance, licence cancelled 4 October 2022
- IPLAN Financial Solutions Pty Ltd, licence cancelled 9 November 2022
- Australian Mortgage Partners Pty Ltd, licence cancelled 9 November 2022
- Kingston Capital Services Australia Pty Ltd, licence cancelled 9 December 2022
- Thi My Hien Dang, licence cancelled 9 December 2022
Meantime, ASIC also announced on December 16 that it had banned two Gold Coast-based financial service providers and cancelled the Australian financial services licence of National Advice Solutions Pty Ltd (National Advice Solutions). ASIC also banned the two Gold Coast-based responsible managers Gail Glasby and Paul Carcallas from providing financial services for a period of 10 years.
ASIC said it had cancelled the AFS licence of National Advice Solutions because it failed to ensure that financial services covered by the licence were provided efficiently, honestly and fairly. National Advice Solutions adopted a “layered advice” strategy whereby the licensee separated the advice into pre-determined topics, regardless of the client’s personal circumstances, goals or advice needs.
This strategy was found to actively impede financial advisers from complying with the financial services laws as clients were provided with expensive and templated advice that was not appropriate for their personal circumstances, ASIC said.
ASIC also cancelled the AFS licence of VIG Asset Management Pty Ltd (VIG) effective December 8.
The licence authorised VIG to deal in interests in managed investment schemes to wholesale clients.
ASIC cancelled the licence because receivers and managers were appointed to the property of VIG. Philip Campbell-Wilson and Matthew Byrnes of Grant Thornton were appointed as joint receivers and managers on June 25, 2020.
VIG can apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.
