ASIC has suspended Melbourne-based credit licensee Peter Wormington for a period of four months and cancelled the Australian credit licence of Melbourne-based Emmanuel Katsoulis.
Mr Wormington had been expelled from the Australian Financial Complaints Authority due to non-payment of fees and has failed to pay industry funding levies owed to ASIC.
Mr Wormington's licence suspension took effect on 11 October 2024.
Mr Katsoulis failed to lodge various annual compliance certificates (ACCs) and had failed to pay industry funding levies owed to ASIC.
Mr Katsoulis' licence cancellation took effect on 4 October 2024.
The Licensees have a right to apply to the Administrative Review Tribunal for a review of ASIC's decision.
Background
Mr Katsoulis has held Australian credit licence no 502218 since 14 February 2018.
Mr Wormington has held Australian credit licence no 404282 since 25 May 2011.
The suspension and cancellation of the licenses is part of ASIC's ongoing efforts to improve compliance across the credit industry.
A suspension will allow compliance failures to be remedied and assist in improving the performance of the financial system by ensuring that consumers can feel confident when dealing with persons licensed to engage in credit activities.
Under section 55 of the Credit Act, ASIC has the power to cancel or suspend a credit licence if a credit licence holder has contravened its general conduct obligations under section 47. This includes the obligation to be a member of AFCA and the obligation to comply with the credit legislation. Section 53(1) of the Credit Act outlines the obligation to lodge an ACC and is defined as credit legislation in section 5 of the Credit Act.
Under section 54 of the Credit Act, ASIC has the power to cancel or suspend a credit licence if a leviable entity has not paid in full at least 12 months after the due date for payment the amount of the levy, and an amount of late payment penalty (if any) in relation to the levy.
