In a recent move in the Australian financial sector, a federal court dismissed a case filed by the Australian Securities and Investments Commission (ASIC) against a sister company of the well-known fintech firm Finder.com.
In a March 14 ruling presided over by Justice Brigitte Markovic, the court concluded that finder Earn, a yield-based product, followed financial standards but did not meet the criteria for classification as a debenture under the Corporations Act.
As a result, ASIC’s claims, which were predicated on establishing FInder Earn as a debenture, were declared baseless. The case, filed in December 2022, accused Finder Wallet, Finder’s subsidiary, of providing an illegal financial product and failing to get the required financial services license.
Despite Finder withdrawing the product prior to the case, ASIC persisted in its charges, citing regulatory concerns.
When asked about the potential reintroduction of the Earn product, they said there were no imminent plans, blaming the initial shutdown on rising interest rates rather than regulatory concerns.
FInder’s CEO, Frank Restuccia, emphasized their commitment to regulatory compliance and consumer welfare. ASIC’s Tim Mullaly emphasized the importance of licensing and consumer protections, indicating that the verdict will be thoroughly reviewed.
