Regulatory Alerts2025-10-24
Federal Court orders RAMS to pay $20 million penalty for home loan compliance failings
The Federal Court has ordered RAMS Financial Group to pay a $20 million penalty after admitting to widespread breaches of the Credit Act between June 2019 and April 2023. The contraventions included dealing with unlicensed referrers, failing to manage conflicts of interest, and neglecting supervision of representatives who submitted false documents to approve unsuitable loans. ASIC Deputy Chair Sarah Court emphasized that financial entities must adhere to legal obligations to protect consumers from lending practices that expose them to significant financial harm.
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