ASIC has stepped up its intensity with an infringement notice issued to a Sydney broker.

The credit infringement notice, the first issued by ASIC since it took over as NCCP watchdog, carries a fine of $27,500. ASIC declined to name the broker, but said the notice was issued because the company advertised credit services on its website, but was not registered, authorised or licensed to provide credit services. ASIC chairman Greg Medcraft said issuing an infringement notice allows the watchdog to avoid commencing civil proceedings.

"ASIC will not take this step lightly, however, the issuing of an infringement notice should send a clear message to traders that we are prepared to take action for the alleged breach," Medcraft commented.

An ASIC spokesperson told Australian BrokerNews the organisation could not name the broker involved as a payment of the penalty would not constitute an admission of guilt on the part of the broker. She said ASIC would not name an entity it took action against until it commenced court proceedings.

The broker now has 28 days to pay the penalty for the infringement notice, or ASIC can commence civil proceedings for a maximum penalty of $1.1m. Medcraft said the infringement notice should serve as a warning to the industry that ASIC was poised to take action against those who contravene NCCP regulations.

"Mortgage brokers are the gatekeepers between consumers and lenders and they have an obligation to act in accordance with the law. This means consumers should be able to rely on the fact that when a mortgage broker is advertising, they are legally authorised to be providing credit services to that consumer. If they aren't licensed or authorised to provide credit services, consumers may be exposed to detriment. The issuing of our first notice should signal to industry that ASIC will act promptly to deter breaches of the new consumer credit laws," he said.