ASIC has prohibited Robin Raju of Parramatta, New South Wales from engaging in credit activities for two years under its banning powers. ASIC has also suspended the credit licence of Robin Raju & Associates Pty Ltd (RRA) for two years.
ASIC determined that Mr Raju submitted to ASIC on 25 September 2022 a Credit Licence Annual Compliance Certificate for RRA which contained false and misleading statements, and contravened the obligation to act efficiently, honestly and fairly.
Mr Raju did not disclose that he had been the subject of disciplinary action by the Tax Practitioners Board, among other matters. ASIC found that Mr Raju contravened the National Consumer Credit Protection Act 2009 (Credit Act) and made a banning order that prohibits him engaging in credit activities for two years.
Additionally, ASIC found that RRA contravened the Credit Act by failing to truthfully answer questions on its Annual Compliance Certificate. Given the findings about Mr Raju, RRA does not have a fit and proper person as its officer as required by the Credit Act. The RRA credit licence has no effect while it remains suspended.
Mr Raju’s prohibition against engaging in credit activities and RRA’s licence suspension took effect on 7 December 2023.
Mr Raju and RRA have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decisions.
Background
Section 80 of the Credit Act allows ASIC to ban a person from participating in the credit industry if the person, among other things, has contravened any credit legislation. A banning order can, under section 81 of the Credit Act, prohibit or restrict a person who participates in the credit industry in specific ways.
Section 55 of the Credit Act allows ASIC to suspend or cancel a credit licence if, among other things, ASIC believes that the licensee cannot satisfy the fit and proper person requirement. If the licensee is a corporation, it will not meet that requirement if its officer is not a fit and proper person.
ASIC maintains a banned and disqualified persons register that provides information about people who have been disqualified from:
- involvement in the management of a corporation;
- auditing self-managed superannuation funds (SMSFs); or
- practising in the financial services or credit industry.
Moneysmart.gov.au has useful information for consumers about using a mortgage broker and how to complain about a business.
