Bouris' Yellow Brick Road taken to task by corporate watchdog
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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The Australian Securities and Investments Commission (ASIC) found Yellow Brick Road was issuing loan advice through multiple unregistered entities. Its subsidiary, Yellow Brick Road Finance, had authorised more than 100 people as credit representatives but had not registered the companies that operate the branches as required by the national credit licensing framework.
ASIC required the update because the national credit scheme mandates every person or entity involved in the loan process hold a licence. ASIC determined the companies operating Yellow Brick Road branches acted as intermediaries and therefore needed to be authorised or registered under the licence.
The article says Yellow Brick Road operates through a complex network of subsidiaries and authorised representatives, running more than 150 branches. Its finance subsidiary had authorised more than 100 people working in branches as credit representatives.
Yellow Brick Road issues financial products and services including mortgages and credit cards through its network of subsidiaries and authorised representatives.
According to ASIC, the group has responded to its concerns and is now registering its entities under the national credit scheme. ASIC said, 'Yellow Brick Road is now in the process of authorising the corporate entities directly under its licence.'
The national credit scheme exists to protect consumers by ensuring everyone involved in the loan application is licensed or authorised. ASIC said properly authorising each party helps identify all participants in the loan process and strengthens access to external dispute resolution for customers.
The article notes Yellow Brick Road is part-owned by Channel Nine and its chairman is Mark Bouris, who is known for hosting Nine's The Apprentice Australia and The Celebrity Apprentice Australia.
Everyday investors should note that Yellow Brick Road is registering and authorising its corporate entities under its licence, as ASIC required. ASIC also emphasised that all credit licensees need to carefully consider how each party they deal with is authorised or licensed—so investors can watch for updates on the company's licence structure and any further ASIC announcements.
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