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14-163MR ASIC permanently bans Victorian finance broker
ASIC has permanently banned Mr Rudy Noel Frugtniet, a former Victorian finance broker, from engaging in credit activities after it was found he provided misleading information and a lack of full disclosure on a credit licence application.
Mr Frugtniet is a former director of Unique Mortgage Services Pty Ltd (UMS) and was formerly the responsible manager, fit and proper person and key person for UMS’ Australian credit licence.
Mr Frugtniet was banned after ASIC found he was not a fit and proper person to engage in credit activities.
ASIC’s decision was based on Mr Frugtniet’s lack of full disclosure and misleading answers given in relation to questions on UMS’ application for a credit licence, as well as Mr Frugtniet’s adverse disciplinary history, which included his:
- involvement in the breach of a company’s travel agent’s licence
- making of a false declaration to the Migration Agents Registration Authority
- two rejected applications to be admitted as a solicitor
- making of false statements on Newstart allowance application forms
- misrepresenting himself as a lawyer with standing to appear in court
- conveyancing licence being cancelled, and
- making of a false or misleading declaration to the Tax Practitioners Board.
ASIC found that Mr Frugtniet’s conduct is incompatible with the good character, honesty, integrity and judgement required of a person permitted to engage in credit activities.
Deputy Chairman Peter Kell said, ‘Those who deliberately provide misleading information in their credit applications simply should not be in the industry.
‘Where we come across instances like this, ASIC will act quickly to ensure they are removed from the industry.’
ASIC’s investigations in relation to this matter are ongoing.
Mr Frugtniet has the right to appeal to the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision.
On 25 July 2014, Mr Frugtniet filed applications in the AAT for a review of ASIC's decision. The application has been listed for conference on 22 September 2014.
Editor's note 2:
As of September 2014, no date has been set down for the hearing of Mr Frugtniet's application.
Editor's note 3:
The AAT has set down two days for a hearing in this matter, to be held on 29 and 30 January 2015.
Editor's note 4:
Mr Frugtniet appeared in the AAT on 29 and 30 January 2015, and now has an additional 14 days to lodge further written submissions. On receipt of Mr Frugtniet's submissions ASIC will have 14 days to respond.
Editor's note 5:
On 6 March 2015, the AAT upheld ASIC's decision to permanently ban Mr Frugtniet from engaging in credit activities (refer: 15-049MR).
Editor's note 6:
On 7 April 2015, Mr Frugtniet filed a Notice of Appeal with the Federal Court of Australia in relation to the decision of the AAT.
On 22 August 2016, the Federal Court dismissed Mr Frugtniet's appeal (refer: 16-264MR).
On 12 October 2017, the Full Court of the Federal Court dismissed Mr Frugtniet's further appeal (refer: 17-354MR).
On 17 August 2018, Mr Frugtniet was granted leave to appeal to the High Court.
On 15 May 2019, High Court of Australia upheld the appeal (refer 19-116MR).
Editor's note 7:
Mr Frugtniet’s application for review of ASIC’s decision was remitted to
the AAT and heard between 17 February 2020 and 3 August 2020. The AAT’s decision is reserved.