ASIC has permanently banned Mr John Cilmi, a Melbourne-based mortgage broker from engaging in credit activities and has cancelled the Australian Credit Licence of his company Northern Securities (Victoria) Pty Ltd (NSV). 

Mr Cilmi, of Gowanbrae, Victoria is the sole director of NSV and the sole fit and proper person under NSV's credit licence.

ASIC made the decision to ban Mr Cilmi after an investigation found that he:

• was reckless when he submitted false or misleading documents to secure three separate loan applications, including bank and income documents;
• lacked an enquiring mind and failed to be vigilant in the exercise of his duties by submitting false documents in support of loan applications for five customers;
• failed to ensure that NSV complied with its Australian credit licence conditions by not;

o    producing evidence demonstrating the completion of a Certificate IV in Financial Services (Finances/Mortgage Broking) by 1 July 2014 and at least 20 hours of continuing professional development for the years 2011 to 2014

o    ensuring NSV kept records of all relevant client material including loan files in respect of two clients

o    ensuring that NSV maintained breach and training registers and had internal dispute resolution procedures in place between December 2010 to February 2015; and

• was uncertain as to what was required of him as a key person on the credit licence and had little concept of compliance and training requirements for credit assistance providers.

ASIC also cancelled the credit licence of Mr Cilmi's company NSV after finding it failed to carry out its general conduct obligations under the National Consumer Credit Protection Act 2009 (Cth).

Deputy Chairman Peter Kell said, "ASIC banned Mr Cilmi after finding that the management of his credit practice was severely wanting. This case demonstrates the significant penalties that can be imposed against those who demonstrate a lack of understanding and regard for compliance."

Mr Cilmi and NSV have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decisions.