ASIC has cancelled the Australian financial services (AFS) licence of RPD Group Advice Pty Ltd (RPD Group) following a payment of compensation by the Compensation Scheme of Last Resort (CSLR).
On 12 July 2024, the Australian Financial Complaints Authority (AFCA) made a determination against RPD Group, which RPD Group failed to pay. Subsequently, on 13 November 2024, the CSLR paid $62,421.00 to a person for the AFCA determination and notified ASIC. As a result, on 21 November 2024, ASIC cancelled RPD Group's AFS licence.
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.
Background
The CSLR was established in June 2023, commencing operations in April 2024. It can pay up to $150,000 in compensation to consumers who have an unpaid determination from AFCA relating to authorised personal financial advice, credit intermediation, securities dealing or credit provision, and where other eligibility criteria are met.
The AFCA complaint process must first be completed before a claim can be lodged with the CSLR. All reasonable steps to obtain compensation from the financial firm must be taken before a CSLR payment can be made.
ASIC's decision to cancel the AFS licence of RDP Group follows previous ASIC decisions. On 16 October 2024, ASIC cancelled the AFS licence and the Australian credit licence of Ultiqa Lifestyle Promotions Limited following a CSLR payment (24-233MR). On 19 August 2024, ASIC cancelled the AFS licences of Libertas Financial Planning Pty Ltd (in liquidation) (24-181MR), and DOD Bookkeeping Pty Ltd on 7 November 2024 (24-256MR).
Similarly, on 10 September 2024, ASIC cancelled Australian credit licences of Ultimate Credit Management Pty Ltd (in liquidation) and Worry Free Finance Pty Ltd (24-210MR), and Ferratum Australia Pty Ltd on 4 October 2024 (24-223MR).
More information
- The AFCA website contains more information about the AFCA complaint process.
- The CSLR website contains more information about the CSLR claims process.
