Login
ISCOVER
The decision will prevent the broker, previously charged over a misleading credit licence application, from engaging in any future lending activity.
Former mortgage broker and director of Unique Mortgage Services, Rudy Noel Frugtniet, will now be unable to engage in any form of credit activity on behalf of anyone, following a decision made by the Administrative Appeals Tribunal (AAT).
It is the latest update for Mr Frugtniet who, in 2014, was permanently banned from engaging in credit activities by ASIC after he was found guilty of providing misleading information in a credit licence application and failing to provide full disclosure.
In 2015, the AAT upheld ASIC’s decision due to the ex-broker’s “dishonest conduct over a prolonged period; his failure to show any real awareness of the nature, extent and significance of that conduct; and a demonstrated disregard for compliance with regulatory requirements”.
In response, Mr Frugtniet filed an appeal to the Federal Court in 2016, where it was dismissed, which was followed by an appeal to the Full Federal Court in 2017, which was also dismissed.
One year later, Mr Frugtniet was granted leave to appeal to the High Court that which ruled in 2019 that the AAT “erred by taking into account spent convictions in reviewing ASIC’s decision to permanently ban Mr Frugtniet from engaging in credit activities”.
The High Court required the AAT to hear the matter again.
Mr Frugtniet’s application for review was remitted to the AAT and heard over six months in 2020, with the tribunal now ruling that it will endorse and extend the original ASIC decision.
The extension means that Mr Frugtniet will now be unable to perform any function involved in engaging in credit activities or controlling another person who engages in credit activities.
The AAT based its decision on Mr Frugtniet’s history of dishonest behaviour between 1995 and 2014, concluding that he is not a fit and proper person to engage in credit activities and that it would be “inappropriate to leave open any opportunities for Mr Frugtniet to participate in the credit industry”.
Commenting on the decision, ASIC deputy chair Sarah Court stated the honesty of mortgage brokers is what underpins the home loan and credit industry.
“Individuals with a long history of dishonest behaviour should not be in the industry and ASIC is committed to ensuring they are removed when they are discovered,” she said.
ASIC has stated that Mr Frugtniet has the right to appeal.
[Related: Ex-broker pleads guilty to false statement]
JOIN THE DISCUSSION