ASIC bans NSW finance dealer, suspends brokerage

ASIC has banned a NSW finance dealer from partaking in credit score actions and suspended his firm for 2 years.

The regulator alleged that Parramatta dealer, Robin Raju, submitted to ASIC on September 25, 2022, a Credit score Licence Annual Compliance Certificates for his firm, Robin Raju & Associates (RRA), which contained “false or deceptive statements”.

This contravened the duty to behave effectively, truthfully, and pretty, in keeping with ASIC.

RRA, which included enterprise and finance brokers, practising accountants, chartered managers, and enterprise consultants has been working since 1989, in keeping with its Linkedin web page.

ASIC discovered that Raju contravened the Nationwide Shopper Credit score Safety Act 2009 (Credit score Act) and made a banning order that prohibits him partaking in credit score actions for 2 years.

Moreover, ASIC discovered that RRA contravened the Credit score Act by failing to in truth reply questions on its Annual Compliance Certificates.

“Given the findings about Mr Raju, RRA doesn’t have a match and correct particular person as its officer as required by the Credit score Act,” ASIC stated. “The RRA credit score licence has no impact whereas it stays suspended.”

Raju’s prohibition towards partaking in credit score actions and RRA’s licence suspension took impact on December 7, 2023.

Raju and RRA have the fitting to attraction to the Administrative Appeals Tribunal for a overview of ASIC’s selections.

Background

Part 80 of the Credit score Act permits ASIC to ban an individual from collaborating within the credit score trade if the particular person, amongst different issues, has contravened any credit score laws.

A banning order can, beneath part 81 of the Credit score Act, prohibit or limit an individual who participates within the credit score trade in particular methods.

Part 55 of the Credit score Act permits ASIC to droop or cancel a credit score licence if, amongst different issues, ASIC believes that the licensee can’t fulfill the match and correct particular person requirement. If the licensee is an organization, it is not going to meet that requirement if its officer isn’t a match and correct particular person.