ASIC enforcement: Credit licencees' general conduct obligations

Between 1 January to 30 June 2024, ASIC recorded 63 commenced and 140 ongoing investigations. Throughout that period, 4 outcomes have been reached in relation to credit misconduct, and a further 22 have enforcement litigation in process. Given the scale of ASIC's enforcement this year, credit licensees are reminded of the importance of ensuring they have in place robust compliance procedures.

ASIC's Enforcement Power

ASIC has the power to cancel or suspend credit licences if a licensee is likely to contravene general conduct obligations under section 55(b) of the National Consumer Credit Protection Act 2009 ("NCCP Act").

For example, Melbourne credit licensee John Adicho had his credit licence suspended in July 2024 after ASIC found that he had failed to, and could not be relied upon to, discharge his duties and obligations under the NCCP Act. Mr Adicho was also expelled from the Australian Financial Complaints Authority ("AFCA"). His non-compliance included: