ASIC bans finance broker and cancels Australian Credit Licence
ASIC has banned Victorian finance broker Ms Meenakshi Devi Callychurn from engaging in credit activities for five years, and cancelled the Australian credit licence of her company Unique Mortgage Services Pty Ltd (UMS).
Ms Callychurn of Maribyrnong, Victoria, is the sole director of UMS and the sole key person and fit and proper person under UMS’ credit licence. UMS was formerly owned and operated by Mr Rudy Frugtniet who was permanently banned from engaging in credit activities by ASIC in July 2014 (14-163MR).
ASIC’s decision to ban Ms Callychurn was based on concerns including that Ms Callychurn:
- Submitted to ASIC two Annual Compliance Certificates for UMS with false or misleading responses
- Allowed Mr Frugtniet to continue to exercise control over UMS
- Was not engaged in operating the business and attending to duties associated with the UMS credit licence
- Did not understand her responsibilities in relation to the UMS credit licence
- Showed a lack of preparedness to engage with ASIC
ASIC found that Ms Callychurn failed to actively engage in the operations of the business and failed to meet the standards expected in the roles of sole director, key person and fit and proper person. This made her unfit to engage in credit activities.
As result of ASIC’s findings in relation to Ms Callychurn, ASIC also cancelled UMS’ credit licence. In the circumstances, ASIC had reason to believe that UMS was likely to contravene the credit legislation. Further, the banning of Ms Callychurn means that there is no one to carry on the business and to ensure UMS can meet its obligations under the National Credit Act.
Deputy Chairman, Mr Peter Kell said ‘ASIC expects those engaging in credit activities to have the requisite competence and knowledge and to act with integrity. Those who fail in this regard will be removed from the industry.’
Ms Callychurn has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
Source: ASIC
