Bouris' Yellow Brick Road taken to task by corporate watchdog
The corporate regulator has forced Mark Bouris' Yellow Brick Road to update its company licence structure after it was found to be issuing loan advice through multiple unregistered entities.
The Australian Securities and Investments Commission said the group's subsidiary, Yellow Brick Road Finance, had authorised more than 100 people working in branches as credit representatives, but had failed to register the companies that operate the branches - as required by the national credit licensing framework.
Yellow Brick Road issues its financial products and services, including mortgages and credit cards, through a complex network of subsidiaries and authorised representatives. The company operates more than 150 branches through that network.
As a way of protecting consumers, the national credit scheme requires every person or entity involved in the loan process to hold a licence.
ASIC said it had determined that the scheme required Yellow Brick Road to authorise the entities that operate its branches, because they acted as intermediaries between the licensee and the consumer.
It said the group had responded to its concerns and was now registering its entities under the scheme.
"Yellow Brick Road is now in the process of authorising the corporate entities directly under its licence," ASIC said.
"It is important for all credit licensees to consider carefully how each party they deal with is authorised or licensed.
"This helps to ensure that all the parties involved in the loan application process are identified, and also strengthens access to external dispute resolution."
Yellow Brick Road is part-owned by Channel Nine and Yellow Brick Road's chairman Mr Bouris, who hosts Nine's The Apprentice Australia and The Celebrity Apprentice Australia.
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