Regulatory update

ASIC issues final stop order against Indy-C

ASIC made a final stop order preventing Indy-C from offering Centrepay credit arrangements at its Katherine store, after it failed to make a compliant target market determination.

On 29 November 2024, the Australian Securities and Investments Commission (ASIC) made a final stop order against Indy-C-Fashion Accessories Pty Ltd (Indy-C). The ASIC stop order prevents Indy-C from offering Centrepay credit arrangements to consumers at its store in Katherine, in the Northern Territory.

An ASIC delegate decided that Indy-C had offered credit without making a target market determination (TMD). A TMD is a document that sets out who a financial product is suitable for, and how it should be sold.

Update (October 2026): Indy-C applied to the Administrative Review Tribunal (ART) for a review of the stop order. In June 2025, the ART refused Indy-C’s request to pause the order. On 9 October 2025, Indy-C withdrew its review application, and the ART dismissed it. ASIC’s media release confirms the stop order remains in place.

What is an ASIC stop order?

Under the DDO regime in Part 7.8A of the Corporations Act 2001 (Cth), ASIC can make a stop order. A stop order stops a business from offering or selling a financial product to consumers, or from doing certain things in relation to it.

ASIC can first make an interim stop order. This usually lasts 21 days unless ASIC revokes it sooner. ASIC then holds a hearing, where the business can make submissions, before deciding whether to make a final stop order.

ASIC can use a stop order where, for example, a business has not made a TMD, or its TMD is not appropriate.

How was ASIC alerted to Indy-C?

ASIC received complaints through consumer networks and through ASIC’s Indigenous Outreach Program. The complaints suggested that the Centrepay deductions paid to Indy-C may have been harming consumers’ finances.

Indy-C offered credit through deferred deduction arrangements via Centrepay. This meant it had to comply with the DDO. In simple terms, it had to:

• design its credit product with the likely needs, objectives and financial situation of consumers in mind, and
• take reasonable steps to make sure the product was sold to people in its target market.

ASIC investigated and found that Indy-C did not have a TMD. This meant it had not set out who its target market was, or any conditions on how the credit would be offered to make sure customers were likely to be in that market.

ASIC has said it did not allege that any customer suffered a loss because of Indy-C’s failure to have a TMD.

What happened after ASIC warned Indy-C?

December 2023: an initial warning

In December 2023, ASIC told Indy-C about the complaints and that it needed a TMD. Indy-C did not fix the problem and kept offering credit without a TMD.

30 September 2024: interim stop order

About ten months later, on 30 September 2024, ASIC made an interim stop order. It stopped Indy-C from entering new Centrepay credit arrangements. The order was to last 21 days.

During this time, Indy-C gave ASIC several draft TMDs. ASIC gave it extra time to fix the problems it identified. However, ASIC found that none of the drafts complied with the DDO.

16 October 2024: further interim stop order

After a hearing on 16 October 2024, ASIC made a further interim stop order covering the same conduct. This kept the stop in place while the ASIC delegate made a final decision.

29 November 2024: final stop order

The ASIC delegate was satisfied that:

• Indy-C had not fixed its breach of the DDO, because its TMD was not adequate, and
• even if Indy-C offered the credit in the way its TMD described, it was not reasonable to conclude that customers would likely be in the target market.

ASIC then made the final stop order. Services Australia, which runs Centrepay, also suspended Indy-C from entering new Centrepay deduction arrangements or extending existing ones.

What did ASIC say about the Indy-C stop order?

ASIC Deputy Chair Sarah Court said:

Indy-C provided credit arrangements to First Nations consumers to purchase clothing and household goods via deductions from their Centrelink benefit payments in circumstances where ASIC considers it did so without considering whether the credit arrangement would be consistent with the consumer’s objectives, financial situation, and needs. Following regulatory action from ASIC, Indy-C made multiple draft TMDs, however ASIC considers none complied with Indy-C’s design and distribution obligations.

She also noted that this was the second time ASIC had made a final stop order to stop a business offering vulnerable consumers a credit arrangement that ASIC considered did not comply with the DDO.

What does this mean for credit providers?

This decision is a warning for all businesses that offer credit, including retailers offering store credit or Centrepay arrangements. ASIC is willing to use its full range of powers, including stop orders, to stop practices it considers non-compliant.

To reduce your risk:

• Make sure you have a TMD for every credit product you offer before you offer it.
• Make your target market specific. Think about consumers’ likely needs, objectives and financial situation.
• Set distribution conditions that actually keep the product within the target market, especially where customers may be vulnerable.
• Act quickly if ASIC contacts you. Ignoring a warning can lead to a stop order.
• Review your TMD regularly, and whenever complaints or other review triggers arise.

Frequently asked questions

This article is general information only and is not legal advice. It reflects the law and information available at the date of publication. Please contact us for advice about your circumstances.

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