ASIC has banned Victorian finance broker Ms Meenakshi Devi Callychurn from engaging in credit activities for five years, and cancelled the Australian credit licence of her company Unique Mortgage Services Pty Ltd (UMS).

Ms Callychurn of Maribyrnong, Victoria, is the sole director of UMS and the sole key person and fit and proper person under UMS' credit licence. UMS was formerly owned and operated by Mr Rudy Frugtniet who was permanently banned from engaging in credit activities by ASIC in July 2014 (refer: 14-163MR).

ASIC's decision to ban Ms Callychurn was based on concerns including that Ms Callychurn:

• Submitted to ASIC two Annual Compliance Certificates for UMS with false or misleading responses
• Allowed Mr Frugtniet to continue to exercise control over UMS
• Was not engaged in operating the business and attending to duties associated with the UMS credit licence
• Did not understand her responsibilities in relation to the UMS credit licence
• Showed a lack of preparedness to engage with ASIC

ASIC found that Ms Callychurn failed to actively engage in the operations of the business and failed to meet the standards expected in the roles of sole director, key person and fit and proper person. This made her unfit to engage in credit activities.

As result of ASIC's findings in relation to Ms Callychurn, ASIC also cancelled UMS' credit licence. In the circumstances, ASIC had reason to believe that UMS was likely to contravene the credit legislation. Further, the banning of Ms Callychurn means that there is no one to carry on the business and to ensure UMS can meet its obligations under the National Credit Act.

Deputy Chairman, Mr Peter Kell said, 'ASIC expects those engaging in credit activities to have the requisite competence and knowledge and to act with integrity. Those who fail in this regard will be removed from the industry.'

Ms Callychurn has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.

Editor's note 1:

On 26 March 2015, applications were filed in the Administrative Appeals Tribunal for a review of the banning decision of Ms Callychurn and also the cancellation of the credit licence of her company Unique Mortgage Services Pty Ltd. Both applications have been listed for conference on 19 May 2015.

Editor's note 2:

The Administrative Appeals Tribunal set down a final hearing in relation to Ms Callychurn's banning and UMS' Australian credit licence cancellation, to be heard on 2 June 2015 in Sydney.

Editor's note 3:

The matter was heard by the Administrative Appeals Tribunal on 2 June 2015, and the decision was reserved. 

Editor's note 4:

On 29 February 2016, the AAT upheld the credit licence cancellation of UMS and the banning of Ms Callychurn from engaging in credit activities. The period of Ms Callychurn's banning was reduced from five years to four years. (16-057MR).

Editor's note 5:

On 29 March 2016, Ms Callychurn and UMS filed a Notice of Appeal with the Federal Court of Australia in relation to the decision of the AAT. On 1 December 2016, the matter was heard before Justice Beach. On 27 January 2017, the Federal Court appeal was dismissed (17-019MR).

Editor’s note 6:

On 17 February 2017, Ms Callychurn and UMS filed a Notice of Appeal to the Full Federal Court.

Editor's note 7:

On 1 September 2017, the Full Federal Court upheld Ms Callychurn and UMS’s appeal and remitted the matter to the Administrative Appeals Tribunal to be re-heard (17-298MR).

Editor's note 8:

On 7 and 26 March 2018, the matter was re-heard in the Melbourne Administrative Appeals Tribunal.

Editor's note 9:

On 25 October 2019, and upon remittal from the Full Federal Court, the AAT affirmed ASIC's decision to ban Ms Callychurn from engaging in credit activities for five years and to cancel the Australian Credit License of UMS (19-294MR).