ASIC crackdown on mortgage scheme firm
The Australian Securities and Investments Commission (ASIC) has subjected a mortgage scheme operator to additional Australian financial services licence (AFSL) conditions after it failed to meet various obligations.
The corporate regulator is reigning in on C&F Nominees Mortgage Securities Limited (C&F) after it found the firm did not have ample arrangements to meet its various AFSL obligations.
ASIC found C&F failed to comply with conditions of its AFSL, breached reporting obligations, and did not have in place proper dispute resolution, risk management systems and disclosure obligations mechanisms.
ASIC has included various conditions in the licence including the appointment of an independent compliance consultant, and for C&F to assess and report on whether procedures relating to arrangements for complying with licensee obligations are up to the mark.
“Compliance should be at the heart of AFS licensees’ business operations to ensure they are fulfilling their legal obligations and instilling confidence in the public who deal with them,” ASIC commissioner Greg Tanzer said.
C&F has cooperated with the regulator and appointed an independent compliance consultant to review its processes for compliance, ASIC said.
ASIC said it will continue to watch C&F for 12 months.
AUTHOR
Malavika Santhebennur
Recommended for you
National advice firm MiQ Private Wealth has appointed a new chief executive to lead the business through a “transformative era” after penning a partnership deal with AZ NGA earlier this month.
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
