Issue Date:  -  Tuesday, 15 June 1999

Finance Brokers require business certificates to trade

The Ministry of Fair Trading has become aware that Graeme Grubb, a director of Rowena Nominees Pty Ltd formerly trading as Graeme Grubb Finance - now in liquidation - has written to a number of past investor clients encouraging them to transfer their business to an unnamed finance broker associated with Graeme Grubb.

The Finance Brokers' Supervisory Board recently successfully applied to the District Court for authorisation to appoint a supervisor to Rowena Nominees.

Fair Trading Commissioner Patrick Walker said this afternoon finance brokers needed both a licence and a business certificate in order to practise in the industry.

"This is so that only suitable and qualified individuals can offer finance broking services to the community. These type of transactions often involve people's accumulated savings, including those of retirees," Mr Walker said.

Mr Grubb, whilst holding a licence, does not have a business certificate and therefore cannot operate a finance broking business. However, there is no law that stops Mr Grubb from working for a licensed finance broker.

"In Mr Grubb's letter to investors, he indicated that his past clients could be serviced by an unnamed finance broker," Mr Walker said.

"Inquiries by an investigator and the Ministry's records show this person is not currently licensed as a finance broker."

Mr Walker said people considering investing their money were wise to seek appropriate professional advice.

The Ministry has produced a brochure for potential investors called Finance Brokers and Mortgage Investments; A Guide for Private Investor A Guide for Private Investors which is available from us by calling 1300 13 40 54 then option 4, or by sending an email to consumer@docep.wa.gov.au.