The Australian Securities and Investments Commission (ASIC) has handed a Melbourne based mortgage broker
a lifetime ban following an investigation into his conduct.
ASIC this week permanently banned John Cilmi from engaging in credit activities and cancelled the Australian Credit Licence of his company Northern Securities (Victoria) Pty Ltd (NSV).
ASIC’s decision to ban Cilmi came after an investigation found he failed to meet standards set by the regulator in four areas.
ASIC found Cilmi acted recklessly by submitting false or misleading documents to secure three separate loan applications, including bank and income documents and lacked an enquiring mind and failed to be vigilant in the exercise of his duties by submitting false documents in support of loan applications for five customers.
ASIC’s investigation also found that Cilmi was uncertain as to what was required of him as a key person on the credit licence and had little concept of compliance and training requirements for credit assistance providers.
Cilmi also failed to ensure that NSV complied with a number of Australian credit licence conditions.
The credit license of NSV was cancelled after ASIC found it failed to carry out its general conduct obligations under the National Consumer Credit Protection Act 2009.
ASIC deputy chairman Peter Kell said the penalties show the serious repercussions that face finance professionals that don’t comply with professional standards.
“ASIC banned Mr Cilmi after finding that the management of his credit practice was severely wanting,” Kell said.
“This case demonstrates the significant penalties that can be imposed against those who demonstrate a lack of understanding and regard for compliance."
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker