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21-039MR Former mortgage broker pleads guilty to failing to take reasonable steps to ensure that he did not make a false statement in a compliance certificate lodged with ASIC
Mr Henan Gao of Ryde, New South Wales, the director of Shinning Crown International Pty Ltd (SCI), has pleaded guilty to one count of failing to take reasonable steps to ensure that he did not make or authorise the making of a statement that was false or misleading in a material particular, in a credit licence annual compliance certificate (compliance certificate) lodged with ASIC.
SCI held an Australian credit licence and operated a mortgage brokerage business in Sydney. Mr Gao was the sole fit and proper person and responsible manager of SCI’s credit licence. Mr Gao was also the sole mortgage broker for SCI’s business.
In April 2016, Mr Gao had his lender accreditation with ANZ suspended. On 15 May 2017, Mr Gao, on behalf of SCI, completed and lodged a compliance certificate with ASIC, in which he stated that none of SCI’s fit and proper people had accreditation cancelled or suspended by a lender. The statement was false or misleading in a material particular because Mr Gao, as SCI’s only fit and proper person, had his accreditation with ANZ suspended.
The offending is contrary to section 225(6) of the National Consumer Credit Protection Act 2009.
The matter has been listed for sentencing before the Downing Centre Local Court on 23 March 2021.
The Commonwealth Director of Public Prosecutions is prosecuting the matter.
Australian credit licence holders are required to identify the people involved in the management of their credit businesses, known as fit and proper people.
Credit licence holders are also required to annually lodge an Australian credit licence compliance certificate with ASIC, in which licensees are required to certify that they are complying with their credit licence obligations.
SCI’s Australian credit licence was cancelled by ASIC under section 54 of the National Consumer Credit Protection Act 2009 on 9 November 2018.