An unpaid AFCA determination covered through the CSLR has led the corporate regulator to cancel yet another AFSL.
ASIC has announced, for the second time in one week, the cancellation of an Australian Financial Services Licence (AFSL) following payment of compensation by the Compensation Scheme of Last Resort (CSLR).
ASIC cancelled the licence of Brite Advisors, which has been in liquidation since the Federal Court ordered it be wound up in February 2024.
The firm provided advisory, pension administration and asset management services to clients in Australia, the UK, the US, Switzerland and Hong Kong, and also offered an investment platform to self-invested personal pension providers and self-managed super funds (SMSFs).
The Federal Court heard last February that it was “highly likely” the group had misappropriated client funds.
On 30 September 2024, the Australian Financial Complaints Authority (AFCA) made a determination against Brite Advisors, which it failed to pay.
On 2 April 2025, the CSLR paid $21,888.20 to a person for the AFCA determination and notified ASIC. As a result, on 29 April 2025, ASIC cancelled Brite Advisors’ AFS licence.
“Although Brite Advisors’ AFS licence is cancelled, this is on the condition, imposed by ASIC, that Brite Advisors must remain a member of AFCA for a period of 12 months, ending on 29 April 2026,” the regulator said.
“Where the CSLR pays compensation to an eligible consumer in relation to an AFCA determination and notifies ASIC of the details of the firm that failed to pay the compensation, ASIC must cancel the AFS licence or credit licence of the firm.
“The cancellation is not subject to discretion or merits review.”
The list of firms that have seen their AFSL cancelled due to a CSLR payment continues to grow, with Viridian Equity Group the most recent to lose its licence.
On 31 October 2024, AFCA made three determinations against Viridian Equity, which Viridian Equity failed to pay.
Subsequently, on 11 March 2025, the CSLR paid three payments totalling $450,000 for the AFCA determinations and notified ASIC. As a result, on 17 April 2025, ASIC cancelled Viridian Equity’s AFS licence.
The AFCA determinations against Viridian Equity relate to investments in a property development managed investment scheme, which subsequently failed and caused the complainants to lose between $150,000 and $400,000, depending on the case.
The complaints authority added that the project was restricted to wholesale clients or sophisticated investors.
“The financial firm incorrectly assessed the complainants as sophisticated investors. The complainants were ineligible to invest in the project. The financial firm should not have accepted their investment application,” AFCA wrote in one of the determinations.
The first action following a CSLR payment was related to the Libertas in August 2024.
In October, ASIC also cancelled the AFSL and Australian Credit Licence of Ultiqa Lifestyle Promotions Limited on the back of a CSLR payment, while it also cancelled the AFSL of both DOD Bookkeeping and RPD Group Advice in November.
