ASIC gets tough on unlicensed brokers
The Australian Securities and Investments Commission has become more aggressive in its campaign to shut down unlicensed brokers. It has taken a Sydney broker to court over repeated contraventions of the National Consumer Credit Protection Act.The Federal Court ordered that the brokerage, EasyChoice Home Loans, stop advertising home-loan services and fined the director of the company A$7500 for advertising the provision of home-loan services in circumstances where the company was not authorised to do so.EasyChoice did not complete its application for a credit licence, which has been a requirement since January last year, but was advertising its services as recently as April this year.Nor did it shut down its website until ASIC started court action. The court found that EasyChoice's director, Nathan Elali, did not treat ASIC's earlier warnings seriously. ASIC's first contact with EasyChoice was in March last year.