A judge has found that non-bank lender Firstmac’s cross-selling of deposit and investment products was “wholly inadequate”, and it has become the first financial outfit pinged by new regulations designed to ensure suitable products are promoted to customers.

Justice Kylie Downes ruled in favour of corporate regulator ASIC on Wednesday morning and agreed Firstmac had failed in its obligations to take “reasonable steps” to make sure its cross-selling and promotion of financial products was done to appropriate investors.