24. September 2010 15:17
ASIC has begun its first nationwide surveillance activity to detect people and businesses engaging in credit activities without registration. Engaging in credit activities without registration has been an offence since 1 July 2010.
ASIC will be in the field from now until the end of the year. Although the legislation allows for ASIC to prosecute or seek a civil remedy from the courts for non-compliance, the primary focus of the surveillance activity is to promote and drive compliance with the new consumer credit regime.
The maximum criminal penalties for operating without registration or a licence are $22,000 for individuals and $110,000 for corporations, or two years imprisonment, or both; or civil penalties of up to $220,000 for individuals and $1.1 million for corporations, partnerships or multiple trustees.
More information is available on the official ASIC site.
For up-to-date commentary regarding the sweeping changes to the consumer credit regime, subscribers are referred to Australian Consumer Credit Law.