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22-030MR AAT prohibits former Victorian mortgage broker from participating in the credit industry
The Administrative Appeals Tribunal (AAT) has endorsed and extended ASIC’s original decision to permanently ban former Victorian mortgage broker Rudy Noel Frugtniet from engaging in credit activities.
Mr Frugtniet remains permanently banned from engaging in any credit activities. The AAT also widened Mr Frugtniet’s original banning order to permanently ban him from performing any function involved in engaging in credit activities or controlling another person who engages in credit activities.
The varied orders were made using expanded powers granted to ASIC in 2020 to ban a person from controlling, or performing functions in, a business or company which engages in credit activities.
The AAT noted Mr Frugtniet’s track-record of dishonest behavior and found that he is not a fit and proper person to engage in credit activities. Further, the AAT found that it would be inappropriate to leave open any opportunities for Mr Frugtniet to participate in the credit industry.
ASIC Deputy Chair Sarah Court said, ‘The honesty of mortgage brokers underpins the home loan and credit industry. Individuals with a long history of dishonest behaviour should not be in the industry and ASIC is committed to ensuring they are removed when they are discovered.’
Mr Frugtniet has the right to appeal the AAT’s decision.
ASIC permanently banned Mr Frugtniet from engaging in credit activities on 26 June 2014, after finding that he provided misleading information in a credit licence application and failed to provide full disclosure (14-163MR).
On 6 March 2015, the AAT affirmed ASIC's decision to permanently ban Mr Frugtniet from engaging in credit activities (15-049MR).
On 15 May 2019, the High Court held that the AAT erred by taking into account spent convictions in reviewing ASIC’s decision to permanently ban Mr Frugtniet from engaging in credit activities (19-116MR). Because of the High Court’s decision, Mr Frugtniet’s application for review of ASIC’s 2014 decision was remitted to the AAT and heard between 17 February and 3 August 2020.
Mr Frugtniet’s permanent ban from engaging in credit activities made on 26 June 2014 remained in effect throughout the above proceedings.
On 22 March 2022, Mr Frugtniet filed a Notice of Appeal with the Federal Court of Australia in relation to the decision of the AAT.