DDO

A personal lender has been issued a stop order from the financial services regulator – the latest action the watchdog has taken in the small credit sector.

In its first DDO civil penalty action against a distributor of financial products, ASIC is taking Firstmac to court for allegedly breaching design and distribution obligations.

The Federal Court has ruled in favour of the regulator, finding that a non-bank lender has breached the new design and distribution provisions.

The non-bank lender has been ordered by the Federal Court to pay $8 million in penalties for failing to meet its design and distribution obligations.

The Australian Securities & Investments Commission has published a snapshot report into small amount credit lenders’ compliance with DDO obligations.