Suspension part of efforts to improve compliance within the credit industry
The Australian Securities and Investments Commission (ASIC) has suspended credit licensee John Adicho from engaging in credit assistance activities for six months, effective until Dec. 18, 2024.
Adicho’s suspension follows his expulsion from the Australian Financial Complaints Authority (AFCA) due to non-payment of fees, failure to lodge six annual compliance certificates, and non-payment of industry funding levies owed to ASIC.
The regulator found that the Melbourne-based Adicho failed to discharge his duties and obligations under credit legislation, cannot be relied upon to meet these obligations, and is likely to contravene credit legislation in the future. The suspension of his licence took effect on July 18.
Adicho, who has held the Australian credit licence since October 2011, has the right to apply to the Administrative Appeals Tribunal for a review of ASIC’s decision. His suspension is part of ASIC’s ongoing efforts to improve compliance within the credit industry. It aims to address compliance failures and enhance the financial system’s performance, ensuring consumer confidence in licensed credit activities.
Under Section 55 of the National Consumer Credit Protection Act, ASIC can suspend or cancel a credit licence if the licensee is likely to contravene general conduct obligations, does not satisfy the fit and proper person requirement, or if the application for the credit licence was materially false or misleading.
Earlier this week, ASIC said it has disqualified multiple directors – three from the financial services industry – during the second quarter of 2024, as part of its ongoing efforts to protect small businesses from unfair practices.
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