ASIC has banned a Sydney mortgage and finance broker for six years from engaging in credit activities after allegedly making false disclosures and mishandling home loan applications among other offences.
The broker, Qingshan Yu, was also banned from controlling a credit business and performing any function in relation to carrying on a credit business while the regulator cancelled the Australian credit licence of Yu’s company, Actif Pty Ltd (Actif).
Actif held a credit licence from November 9, 2010, and provided mortgage and finance broking services including arranging home loans.
ASIC determined that Yu contravened credit legislation by making false disclosures to ASIC in two successive annual compliance certificates and was deficient in his handling of home loan applications, which made it possible for false documents to be submitted to lenders in his name.
The corporate regulator also found that Yu exhibited behaviour that was “inconsistent with the attributes of diligence, honesty, integrity and good judgment” and was likely to contravene credit legislation.
“(Yu) is not a fit and proper person to participate in the credit industry,” ASIC said.
Yu’s banning and Actif’s licence cancellation took effect on June 28, 2023.
Actif and Yu have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
Section 80 of the National Consumer Credit Protection Act allows ASIC to ban a person from participating in the credit industry if the person, among other things, has “contravened any credit legislation, is not a fit and proper person to engage in credit activities, or is not adequately trained to engage in credit activities”.
Section 55 of the same Act allows ASIC to suspend or cancel a credit licence if, among other things, ASIC believes that the licensee is “likely to contravene its general conduct obligations, the fit and proper person requirement is not satisfied, or the application for the credit licence was materially false or misleading”.
ASIC maintains a banned and disqualified persons register that provides information about people who have been disqualified from the involvement in the management of a corporation, auditing self-managed superannuation funds (SMSFs), or practising in the financial services or credit industry.