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15-049MR AAT affirms ASIC's permanent ban of Victorian finance broker
The Administrative Appeals Tribunal (AAT) has affirmed ASIC's decision to permanently ban Rudy Noel Frugtniet, a former Victorian finance broker, from engaging in credit activities.
In affirming ASIC's decision, the AAT found that a permanent banning order of Mr Frugtniet was appropriate due to his 'dishonest conduct over a prolonged period; his failure to show any real awareness of the nature, extent and significance of that conduct; and a demonstrated disregard for compliance with regulatory requirements'.
ASIC banned Mr Frugtniet, a former director of Unique Mortgage Services Pty Ltd, in July 2014 after it was found he provided misleading information and a lack of full disclosure on a credit licence application (refer: 14-163MR).
Mr Frugtniet filed an application in the AAT for a review of ASIC's decision on 25 July 2014.
Mr Frugtniet also made an application for a stay of the banning which was refused by the AAT on 22 August 2014.
Mr Frugtniet represented himself at the AAT hearing which was held on 29 and 30 January 2015.
The AAT affirmed ASIC's decision to ban Mr Frugtniet on 6 March 2015, agreeing that he is not a fit and proper person to engage in credit activities.
On 7 April 2015, Mr Frugtniet filed a Notice of Appeal with the Federal Court of Australia in relation to the decision of the Administrative Appeals Tribunal. A first directions hearing is listed on 5 May 2015.
Editor's note 2:
On 5 May 2015, Mr Frugtniet appeared self represented in the Federal Court. The Court has issued a timeline and the proceeding is to be listed for a two day hearing on a date to be fixed after 3 July 2015.
Editor's note 3:
The Federal Court has listed the hearing of Mr Frugtniet's appeal on 3 and 4 December 2015.
Editor's note 4:
At the hearing on 3 December 2015, Bromberg J has reserved his decision.
Editor's note 5:
On 22 August 2016, the Federal Court dismissed Mr Frugtniet's appeal (refer: 16-264MR).
Editor's note 6:
On 12 October 2017, the Full 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.