An ASIC investigation has found that MyBudget, an online debt management company was providing financial services without an AFS license. The regulator is now “assessing” whether to grant one to the group.
July 19, 2021, | AtoZ Markets – In a statement, The Australian Securities and Investments Commission (ASIC) said an investigation had found that MyBudget, which holds an Australian credit license, was “providing services to its clients via a non-cash payment facility, which would require the company to hold an Australian financial services (AFS) license”.
MyBudget customers are provided with a budget plan to meet their financial objectives and goals, and clients then deposit their income into a MyBudget account which facilitates the distribution of funds in accordance with the plan.
ASIC said the company had been brought to its attention when it suffered a ransomware intrusion that meant 13,000 clients were unable to access their online account for at least seven days.
“ASIC was particularly concerned about unlicensed financial services conduct by an entity providing debt management services during the COVID-19 pandemic, when more consumers may face financial hardship and seek budgetary and related assistance,” the regulator said.
ASIC said the company had now applied for an AFS license and the regulator was assessing the application.
ASIC expects AFS licensees to do all things necessary to meet their obligations under financial services laws, comply with their license conditions, and ensure that the financial services covered by the license are provided efficiently, honestly, and fairly.
Think we missed something? Let us know in the comment section below.