ASIC has banned Sydney-based mortgage and finance broker Mr Qingshan Yu from engaging in credit activities, controlling a credit business, and performing any function in relation to carrying on a credit business for a period of six years.

ASIC has also cancelled the Australian credit licence of Mr Yu’s company, Actif Pty Ltd (Actif). Actif held a credit licence from 9 November 2010, and provided mortgage and finance broking services including arranging home loans.

ASIC determined that Mr Yu:

• contravened credit legislation by making false disclosures to ASIC in two successive annual compliance certificates;
• was deficient in his handling of home loan applications, which made it possible for false documents to be submitted to lenders in Mr Yu’s name;
• exhibited behaviour which was inconsistent with the attributes of diligence, honesty, integrity and good judgment;
• is likely to contravene credit legislation; and
• is not a fit and proper person to participate in the credit industry.

Mr Yu’s banning and Actif’s licence cancellation took effect on 28 June 2023.

Actif and Mr Yu have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.

Background

Section 80 of the National Consumer Credit Protection Act allows ASIC to ban a person from participating in the credit industry if the person, among other things, has contravened any credit legislation, is not a fit and proper person to engage in credit activities, or is not adequately trained to engage in credit activities.

Section 55 of the National Consumer Credit Protection Act allows ASIC to suspend or cancel a credit licence if, among other things, ASIC believes that the licensee is likely to contravene its general conduct obligations, the fit and proper person requirement is not satisfied, or the application for the credit licence was materially false or misleading.

ASIC maintains a banned and disqualified persons register that provides information about people who have been disqualified from:

• involvement in the management of a corporation;
• auditing self-managed superannuation funds (SMSFs); or
• practising in the financial services or credit industry.

Moneysmart.gov.au has useful information for consumers about using a mortgage broker and how to complain about a business.