ASIC bans West Australian finance broker and cancels Australian Credit Licence of Element Finance

ASIC has banned Mr Tim Zheng, the director of Element Finance Group Pty Ltd (EFG), a West Australian mortgage broking company, from engaging in credit activities for three years. ASIC has also cancelled the Australian Credit Licence of EFG.

ASIC found that Mr Zheng had acted recklessly in providing false documents in support of four loan applications between September 2017 and February 2018.

ASIC also found that Mr Zheng subsequently made a false statement to ASIC in the annual compliance certificate for EFG in July 2018 by failing to disclose that Bankwest had terminated his accreditation after it found that he lodged four home loan applications, which were supported by false documents. Mr Zheng also failed to disclose that, EFG and his membership with aggregator Australian Finance Group Limited was terminated.

ASIC therefore found that Mr Zheng was not a fit and proper person to engage in credit activities.

‘It is essential that credit licensees act with honesty and diligence in discharging their obligations,’ said ASIC Commissioner Sean Hughes.

Mr Zheng’s banning is recorded on ASIC’s Banned and Disqualified Persons Register.

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

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