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15-189MR ASIC permanently bans Perth finance brokers
ASIC has permanently banned Perth based finance brokers, Mr Eric-John Larry Pryor and Mr Peter Lachlan McDonald, from engaging in credit activities and providing financial services.
Mr Pryor of Rossmoyne and Mr McDonald of Bertram, Western Australia, were banned after ASIC found that they had, independently and jointly, engaged in dishonest and misleading conduct when brokering motor vehicle financing for twelve clients between May 2012 and February 2013 whilst employed as finance brokers for Get Approved Finance of Victoria Park.
Despite knowing otherwise, Mr Pryor and Mr McDonald misled vulnerable clients with poor credit histories to believe they would be approved for vehicle finance if their loan applications were supported by guarantors. Rather, Mr Pryor and Mr McDonald prepared loan applications solely in the names of the proposed guarantors without those persons' knowledge or consent. As a result of Mr Pryor's and Mr McDonald's conduct, the lender financed over $315,000 in automotive loans (with interest $470,000) which it otherwise was unlikely to have approved.
ASIC also found that, Mr Pryor and Mr McDonald:
- personally profited from the sale of vehicles to three clients in circumstances where they had sourced the vehicle, artificially inflated the sales price and failed to disclose their interests in the transaction
- fabricated insurance policies in relation to five loans so as to mislead the lender about the existence of mandatory comprehensive insurance policies being in place for those clients.
In permanently banning Mr Pryor and Mr McDonald from engaging in credit activities and providing financial services, ASIC found that both were not fit and proper persons to engage in credit activities, likely to contravene credit legislation and likely to contravene the financial services law.
ASIC Deputy Chairman Peter Kell said the banning highlights ASIC’s strong approach to ensuring that rogue operators are removed from the industry.
‘ASIC will not tolerate this type of behaviour. Those who engage in dishonest and misleading conduct will be removed from the industry,' Mr Kell said.
Mr Pryor and Mr McDonald have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
ASIC's investigation is ongoing.
Mr Pryor and Mr McDonald were employed as finance brokers with Jeremy (WA) Pty Ltd trading as Get Approved Finance, which specialised in providing online motor vehicle finance.
ASIC has published Regulatory Guide 218 Licensing: Administrative action against persons engaged in credit activities (RG 218) and Regulatory Guide 98 Licensing: Administrative action against financial services providers (RG 98). These regulatory guides provide guidance for persons engaging in credit activities and financial services on the administrative powers ASIC uses to enforce the credit and financial services legislation. It describes the administrative actions available to ASIC, and indicates the matters ASIC generally take into account when exercising these powers and explains how ASIC approaches the task of protecting the public and reinforcing the integrity and reputation of the consumer credit and financial services industry.