RAMS sued for systemic misconduct – June 4, 2025
Civil penalty proceedings have commenced against RAMS Financial Group for systemic misconduct in arranging home loans between June 2019 and April 2023.
According to ASIC, RAMS violated sections 31(1), 47(1)(a), (b), (d) and (e) of the Credit Act by, besides working with unlicensed referrers, failing to:
- have proper arrangements to ensure that customers did not suffer from conflicts of interest;
- comply with credit legislation;
- supervise representatives to ensure compliance with credit laws; and
- make sure that the authorized credit activities were conducted efficiently, honestly and fairly.
“RAMS allowed years of unlawful conduct to occur across its franchises, creating the opportunity for loans to be provided to customers who otherwise may not have qualified for those loans.”
Sarah Court, Deputy Chair, ASIC
ASIC is seeking declarations and pecuniary penalties against RAMS. The company, a wholly owned subsidiary of Westpac Banking Corporation, has admitted liability for the contraventions, and has remediated affected customers.
On August 6, 2024, Westpac announced it was closing the RAMS business and franchisee offices, and absorbing the existing A$31.8 billion ($20.6 billion) of RAMS loans into its loan book.
Choosi sued for misleading customers
The insurance comparison provider Choosi Pty Ltd has been sued for allegedly misleading prospective customers through its funeral and life insurance comparison services.
According to ASIC, Choosi has made false or misleading representations since Juli 1, 2019, by claiming to have compared products from a range of funeral and life insurers – when it only had compared policies from one insurer (with one limited exception).
Allegedly, at least 4,225 funeral insurance policies and 9,478 life insurance policies have been sold since then, with Choosi earning A$61m ($39.6m) in commissions.
“We allege Choosi misled thousands of consumers into thinking they were comparing options from a range of insurers.”
Sarah Court, Deputy Chair, ASIC
Allegedly, the misleading representations were found on Choosi’s website, social media, and in television commercials and advertorials – contravening sections 12DB and 12DF of the ASIC Act 2001.
Conditions on Sydney company auditor – June 2, 2025
Conditions have been imposed on the registration of company auditor Allan Facey of MNSA Pty Ltd after concern about him not carrying out auditor duties in line with Australian Auditing Standards.
The concern relates to an audit of an ASX-listed company’s financial report for the year ending June 30, 2023, where he did not collect evidential documents to support his audit opinion.
Facey will complete eight hours of professional education, and engage an independent auditor to review and report to ASIC on remedial actions and three upcoming audits.
Court updates
Full Federal Court dismissed Auto & General appeal – June 5, 2025
ASIC’s appeal against the Federal Court’s ruling on Auto & General Insurance Company Limited has been dismissed by the Full Federal Court.
The Commission earlier alleged that the company had a term in its house and contents insurance policies that was unfair, but both the Federal Court and now the Full Federal Court found this not to be the case.
ASIC is considering this decision.
ASIC News week 23
New review of life insurance premium practices
A new review with an update on how life companies (life insurers and friendly societies) are addressing earlier concerns has been published by ASIC and the Australian Prudential Regulation Authority.
The regulators concern related to complying with policy terms and meeting policyholder expectations around premium increases, product design, and disclosure and marketing materials.
The new review has identified improvements around re-rating practices, marketing and disclosure materials, and product governance – yet “actions to address increasing premium volatility through product design are still at an early stage.” And will engage with those companies that need further assistance.
State of public and private markets
Earlier in February, ASIC published a consultation paper Australia’s evolving capital markets, on which the Commission received a lot of ideas for sensible adjustments to improve “the health of public markets.”
Now, more than 50 public submissions from the industry have been published, as well as the next steps the Commission is planning to take as response to the feedback.
“I was encouraged by the breadth and richness of the responses we received, which recognised this is a timely discussion that will shape the future of Australia’s capital markets,” said Chair Joe Longo.
Speech
On June 4, Commissioner Simone Constant spoke at the Conexus Fiduciary Investors Symposium in the Blue Mountains about the future and current state of Australia’s public and private markets, touching on the response of the consultation paper.
In her remarks, she also mentioned events like how busy the 72 hours after US President Trump introduced the new tariffs were. She listed that close to A$50 billion ($32.5 billion) was wiped off the All Ords, Australian trading volumes spiked since the onset of the COVID-19 pandemic, and there was an unprecedented mass sell-off of US bonds.
She also pointed out that it’s ASIC’s job to look at the country’s markets at times like these and question where the next shock could appear from, and if Australia is ready for it. “Are there market failures or barriers to participating that we need to address? And of course, are our tools and responses still match-fit for the markets of today?” Constant said.
She said: “Public and private markets should complement, not cannibalise each other, and the public participation and utility functions of a listed equities market cannot be forgotten.”
After the remarks, Commissioner Simone Constant spoke to Conexus Financial editor-in-chief Aleks Vickovich in a discussion following the topics of private and public markets, as well as credit and superannuation.
“Whether you are in the investment team or whether you are in the member services team, or whether you’re taking those calls to somebody who’s grieving and wanting their death benefits paid for their loved one, your responsibility is to your member, your responsibility is to a member,” Constant said.
Read the conversation in full here.
Home insurance claims handling needs improvement
In a new review of how home insurers have addressed areas of improvements that ASIC earlier identified after the major floods of 2022, the regulator has now found that even though much progress has been made – “there is still significant room for further improvement.” Without further improvements, ASIC fears that there is “considerable risk of ongoing consumer harm,” including violations of AFS licensee obligations and the General Insurance Code of Practice.
Two areas in need of improvement are the need for home insurers to improve their oversight of independent experts, and to provide better information to consumers when offering cash settlements, ASIC points out.
“Oversight of builders and repairers has improved since our last report, but there are still gaps in oversight of independent experts – the external advisers who provide the expert reports insurers rely on to make claim decisions,” said ASIC Commissioner Alan Kirkland.
Widespread compliance plan deficiencies in the managed investment industry
There’s widespread poor practice among responsible entities (REs) compliance plans, ASIC has found in a new review.
The Commission assessed 50 compliance plans of a combined 1,471 funds, and found that most plans – with nearly A$1 trillion (over $652 billion) in managed investments – failed to properly address the most important requirements across the design and distribution obligation, internal dispute resolution, and reportable situations regimes.
Compliance plans play a vital role in the regulatory framework regarding protecting retail investors, ASIC Commissioner Alan Kirkland commented.
“These plans set out how responsible entities comply with the law, yet many plans we reviewed failed to adequately set out compliance with important regulatory obligations. Failing to plan is planning to fail.”
By the findings, ASIC urges REs to tackle inadequacies and gaps in their plans. The regulator has also sent written concerns to some REs, and is investigating other REs over potential breaches of legal obligations.
Limited no-action position for deficient advice fee written consents
Financial advisers and superannuation trustees must ensure that they are complying with client consent requirements when entering ongoing fee arrangements (OFA), ASIC is calling out.
Responding to industry feedback, a limited no-action position has been granted relating to the inclusion of account numbers in a client’s written consent for the deduction, or arranging of the deduction, of ongoing advice fees. With the no-action position, ASIC will not act on breaches of section 962S of the Corporations Act 2001 and section 99FA of the Superannuation Industry (Supervision) Act 1993 if:
- aa client provided written consent under section 962S for the fee recipient to deduct or arrange to deduct fees under an OFA from January 10 and September 5, 2025;
- An account number was not included in the consent; and
- A superannuation trustee deducted the advice fees as set out in the consent.
This no-action position is in line with ASIC’s policy in Regulatory Guide 108. However, this no-action position does not prevent third parties from taking legal action in relation to the conduct.
Warning to AFS licensees of checking its information
Relevant providers and their authorising AFS licensees must immediately check all relevant information on the Financial Advisers Register, ASIC is urging yet again.
On January 1, 2026, all relevant providers must meet the qualifications standard as the regulator will review and determine who can remain authorised to provide personal advice to retail clients.
As of May 28, 2025, 15,610 relevant providers are registered on the Financial Advisers Register, of which 6,426 hold an approved degree or qualification, and 4,580 are relying on the experienced provider pathway. The remaining 4,604 have not meet the qualifications standard.
“It is a serious offence to knowingly provide false or misleading information to ASIC or to fail to take reasonable steps to ensure the information provided is true and correct,” ASIC states. “It is also an offence to fail to update the Financial Advisers Register within 30 business days of a change to a relevant provider’s details.”
