ASIC Enforcement – Credit Licensees

ASIC has commenced proceedings against RAMS Financial Group in the Federal Court, alleging a range of misconduct in relation to RAMS' activities arranging home loans for consumers.

Credit licensees that provide home loan services to consumers are subject to a range of compliance obligations under the National Consumer Credit Protection Act 2009 (Cth) and the National Credit Code.

In its case against RAMS, ASIC alleges RAMS:

• conducted business with unlicensed persons;
• failed to supervise its representatives appropriately;
• failed to manage conflicts of interest within the business;
• utilised false documentation and information in loan applications; and
• failed to have policies and procedures in place to ensure its representatives complied with the credit legislation.