ASIC cancels Sydney AFSL after CSLR payment
ASIC has cancelled the AFSL of a Sydney asset and investment manager following a payment by the Compensation Scheme of Last Resort (CSLR).
Calaite Capital saw its licence cancelled on 5 May. The firm describes itself as a “professional asset manager and investment adviser for wholesale clients and institutes in Australia” on LinkedIn. The services it offered included fund management, securities trading and investment advisory, as well as corporate services.
On 8 July 2024 and 31 October 2024, the Australian Financial Complaints Authority (AFCA) made two determinations against Calaite Capital, which Calaite Capital failed to pay. Subsequently, on 2 April 2025, the CSLR paid two payments totalling $267,235.57 for the AFCA determinations and notified ASIC.
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.
ASIC said the cancellation is not subject to discretion or merits review.
Since the commencement of the CSLR in April 2024, ASIC has cancelled seven AFS licences and four credit licences. These include Libertas Financial Planning, DOD Bookkeeping, RPD Group Advice, and Brite Advisors.
The proliferation of CSLR payments in such a short period of time has prompted the Financial Advice Association Australia’s general manager for policy, advocacy and standards, Phil Anderson, to describe this as “multiple black swan events” which threaten the advice industry.
Appearing on a webinar with law firm Holley Nethercote, Anderson discussed the possibility of the events repeatedly occurring. While a black swan is typically a rare occurrence, such as Dixon Advisory, he said the industry is currently facing multiple instances in the form of Shield Master Fund and First Guardian.
He said: “We have multiple black swan events happening, you only have to read the news about Shield Master Fund and First Guardian to know there are some very dark clouds out there. We are talking hundreds of millions of dollars at risk with those two entities.”
As a result, the FAAA has been vocal in calling for new Minister for Financial Services Daniel Mulino, who replaced Stephen Jones, to fix the CSLR as a priority.
“We continue to urge the government to fix the CSLR so that financial advisers are not unfairly burdened by the cost of product failures. A cap on the advice levy and a more equitable funding model are essential,” said FAAA chief executive Sarah Abood.
AUTHOR
Laura Dew
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