ASIC targets unregistered credit activities
The Australian Securities and Investments Commission (ASIC) has begun nationwide surveillance to detect unregistered businesses and individuals engaging in credit activities.
Engaging in credit activities without being registered with ASIC has been an offence since 1 July this year under the National Consumer Credit Protection Act.
More than 14,000 people and businesses registered with ASIC before 30 June, 2010, as a precursor to applying for a credit licence. The regulator confirmed the licensing is now underway, with almost 300 licences already issued.
ASIC Commissioner Peter Boxall said ASIC was most likely to pursue prosecutions where firms or people persisted in engaging in credit activities without being registered or licensed.
“All indications to date are that the new regime enjoys widespread support from people working in the credit industry, and that people and businesses who have registered welcome action by ASIC to deter non-registered businesses,” Boxall said.
Maximum criminal penalties for breaching the National Consumer Credit Protection Act 2009 are $22,000 for individuals and $110,000 for corporations, or imprisonment.
Civil penalties are up to $220,000 for individuals and $1.1 million for corporations, partnerships or multiple trustees.
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