ASIC cancels Sydney finance broker's credit licence
The Australian Securities and Investments Commission (ASIC) has cancelled the Australian credit licence of Nova Home Loans Pty Limited after the company failed to become a member of one of ASIC's approved external dispute resolution (EDR) schemes.
The Sydney broking firm was granted a licence to engage in credit activities relating to credit contracts, consumer leases, related mortgages and guarantees, and credit services on 9 December 2010.
After being expelled from membership of the Financial Ombudsman Service Limited in June 2011, Nova Home Loans failed to obtain membership of Credit Ombudsman Service Limited (ASIC's other approved resolution scheme) and its credit licence was subsequently cancelled by the regulator.
Under the 'National Consumer Credit Protection Act 2009', credit licensees are required to be members of an ASIC-approved EDR scheme.
"Membership of an EDR scheme is an important requirement for Australian credit licensees, and as the consumer credit regulator, ASIC will not hesitate to act against those who fail to comply with their responsibilities," ASIC commissioner Peter Kell said.
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