ASIC cancels credit license after major compliance failure

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When was the last time you made sure all of your organisation’s operations and licenses were compliant and up to date? A major compliance oversight has seen a mortgage provider have its credit licence stripped by ASIC.

ASIC has cancelled the credit licence of Pump Financial Pty Limited, a Queensland aggregator and mortgage broker, after it failed to obtain an EDR membership.

The watchdog said Pump Financial's EDR membership was cancelled in January 2012 and never renewed.

It's the second time in a month ASIC has cancelled a credit licence due to EDR omissions.

Sydney brokerage Dean Mooney Pty Ltd was banned from engaging in credit activities after failing to renew its EDR licence last month.

Only two EDR schemes are approved by ASIC. Failure to hold membership to either is a serious offence, it said.

"ASIC will have no hesitation in cancelling the credit licence of those who do not hold membership in either of the ASIC approved schemes," said comissioner Greg Tanzer.

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