Chapter Two Holdings fined for misrepresentations – April 17, 2025
Debt management company Chapter Two Holdings Pty Ltd has been issued two infringement notices with fines totalling A$37,560 ($23,863) for allegedly making misleading statements to customers.
The statements were published on the company’s website between August 1, 2023, and March 14, 2024. The company claimed to have wiped A$80m ($50.8m) in debt and saved consumers A$30m ($19m) – statements which ASIC alleged were misleading because the company didn’t have figures nor evidence to support them.
Chapter Two Holdings paid the first instalment on April 12, yet ASIC says it may keep investigating and file civil penalty proceedings if the company fails to pay the remaining sum.
Green County and Max Funding engaged in unlicensed lending practices – April 16, 2025
Business lender Green County Pty Ltd and business loan introducer Max Funding Pty Ltd have been found to have been engaging in unlicensed credit activity connected to loans that Green County provided to two consumers.
The Federal Court also found that Green County violated consumer protection provisions in the Credit Code.
For one customer, the Court found that both parties failed to make reasonable inquiries to realise that the loan was not for business purpose. For loans provided to both customers, both parties failed to establish that loans were business loans and not consumer loans.
These contraventions meant consumers did not have important protections under the Credit Code.
The Commission was however not successful in its cases against another loan, and Green County director Ivy Tang Gy Ng was found not to have breached her director’s duties.
The next step in this matter is to be determined by the Court.
Wiluna Mining Corporation sued for continuous disclosure and directors’ duties violations – April 14, 2025
Civil penalty proceedings have begun against the gold mining company Wiluna Mining Corporation for breaching continuous disclosure obligations.
Milan Jerkovic, former chair, and James Malone, former chief commercial officer, are also being sued for allegedly failing to properly declare to the Australian Securities Exchange the amount that was raised by Wiluna via a rights issue. Malone is also sued for failing to make sure that those statements were correct.
“Wiluna, its director and chief commercial officer allegedly engaged in serious contraventions of the Corporations Act and made misleading claims to investors.”
ASIC Chair Joe Longo
The faulty announcement took place on June 17, 2022, when Wiluna announced it had raised A$57.3m ($36m) as part of a capital raising, but A$7m ($4.4m) of that sum was never received. The company went later into administration a month later.
ASIC is seeking declarations of contravention against Wiluna, and declarations of contravention and pecuniary penalties against Jerkovic and Malone.
AFS licence suspended after change of ownership – April 14, 2025
The Australian financial services licence of Beacon Wealth Pty Ltd has been suspended until April 7, 2026, after the firm made changes to its directors and stopped to carrying out financial services.
In June 2024, ownership and control of the licensee changed when all shares in the licensee were sold to a new owner and the directors were replaced. The company has since then stopped conducting a financial services business, yet has indicated it wishes to continue.
ASIC news week 16
New AFS portal
On May 5, a new digital portal for handling Australian financial services (AFS) licences will be launched, where users can apply, vary or cancel their licences. The new portal is a step in ASIC’s digital transformation towards becoming a more efficient and data-informed regulator.
Guidance on requesting eligible applicant authorization
A new guidance for individuals and entities that want to be authorized as eligible applicants under the Corporations Act 2001 has been released. Information Sheet 293 Requesting eligible applicant authorisation includes information on:
- who can apply to become one, and how to become one;
- what matters and principles ASIC reviews when making the decision to grant approval or not;
- what to provide to ASIC when making the application and where to submit it;
- fees; and
- how decisions will be delivered.
