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
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
HLB Mann Judd Perth has announced its acquisition of a WA business advisory firm, growing its presence in the region, along with 10 appointments across the firm’s national network.
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
ASIC has cancelled the AFSL of Sydney-based Arrumar Private after it failed to comply with the conditions of its licence.
