The Australian Securities and Investments Commission (ASIC) has accepted a court enforceable undertaking from buy now, pay later provider Elevare Pay Easy Pty Ltd, trading as Elepay.
Elepay’s products are financial products under the Design and Distribution Obligations (DDO) of the Corporations Act which requires Elepay to make a Target Market Determination (TMD) before offering them to consumers.
TMDs ensure that products are only sold to consumers in the target market for that product and that the product is appropriate to their needs and objectives.
Elepay admits that from 5 October 2021 to 15 March 2023 it did not have TMDs for seven credit products it distributed to consumers. During this period, Elepay lent $13.748 million to 1,658 retail clients.
ASIC is concerned that Elepay’s failure…
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