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ISCOVER
Staff Reporter
Just one day after ASIC banned a Western Australia broker, the industry watchdog has suspended the credit licence of another industry participant, proving the commission is indeed “cracking down” on the mortgage industry.
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Yesterday, ASIC announced it had banned Harold Charles Bundy for three years effective from 17 December 2012 and suspended the Australian credit licence of his company, Ezymanagement, until 30 June 2013 after it was found he was not a fit and proper person to engage in credit activities.
According to a preliminary review of Ezymanagement’s practices, ASIC found that Mr Bundy had failed to discharge his duties as a company director with appropriate care and diligence, and in the best interests of SDX Technology, of which he was a director between 1999-2006, and Ezyware Pty Ltd, of which he was a director between 2008-2010.
In addition, Mr Bundy was found to have been involved in negligent or otherwise discreditable business or professional practices with Ezyware between 2005-2010.
Moreover, Mr Bundy was found to have opened a bank account in his own name in or about 2008, and received money payable to Ezyware with the intention of avoiding garnishee orders against Ezyware and had been a director of a further two companies which were deregistered in 1992 and 2006, respectively.
Mr Bundy and Ezymanagement filed applications for a stay and review of ASIC's decisions in the Administrative Appeals Tribunal.
On 4 February 2013, the AAT refused the applications for stay.
The decision by ASIC comes just one day after the watchdog banned WA broker Constantinos Patniotis for failing to comply with “numerous credit laws”.
ASIC’s recent decisions regarding operators within the mortgage industry confirm the watchdog’s earlier comments that it is “cracking down on rogue brokers”.
Late last year a spokesperson for ASIC told The Adviser that the watchdog would continue to keep a “eye” on the broking industry.
“ASIC will continue to concentrate on the mortgage broking industry and ensure that brokers are adhering to the new laws,” the spokesperson said.
