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Friday 20 October 2017

17-354MR Full Federal Court dismisses broker's appeal

The Full Federal Court of Australia has dismissed former Victorian finance broker Rudy Noel Frugtniet's appeal against his permanent banning from engaging in credit activities.

ASIC permanently banned Mr Frugtniet, a former director of Unique Mortgage Services Pty Ltd (UMS), 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 appealed ASIC's decision to the Administrative Appeals Tribunal (AAT) in July 2014. On 6 March 2015, the AAT upheld ASIC's decision to permanently ban Mr Frugtniet from engaging in credit activities owing 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'. (refer: 15-049MR)

Mr Frugtniet appealed to the Federal Court for a review of the AAT's decision on 8 April 2015. On 22 August 2016, Mr Frugtniet's appeal was dismissed. (refer: 16-264MR)

Download the Full Federal Court's decision

Editor's note:

On 9 November 2017, Mr Frugtniet applied for special leave to the High Court.

Editor's note 2:

On 17 August 2018, Mr Frugtniet was granted leave to appeal to the High Court.

Editor's note 3:

On 7 February 2019, the High Court heard Mr Frugtniet’s appeal. The decision has been reserved.

Editor's note 4:

On 15 May 2019, High Court of Australia upheld the appeal (refer 19-116MR).

Editor's note 5:

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.

Last updated: 30/03/2021 09:23