The Australian Securities and Investments Commission (ASIC) has revoked the Australian financial services (AFS) license of RPD Group Advice Pty Ltd.
Cancellation follows payment of compensation from the Compensation Scheme of Last Resort (CSLR).
On 12 July 2024, the Australian Financial Complaints Authority (AFCA) entered a judgment against RPD Group, which RPD Group did not pay. Then on 13 November 2024, CSLR paid $62,421.00 to an individual to determine AFCA and notified ASIC. As a result, on 21 November 2024, ASIC canceled 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 company that failed to pay the compensation, ASIC must cancel the company’s AFS license or credit licence.
CSLR was established in June 2023, starting operations in April 2024. It can pay up to $150,000 in compensation to consumers who have an unpaid AFCA judgment related to authorized personal financial advice, credit mediation, securities trading or credit provision and where other eligibility criteria are met.
The AFCA complaint process must first be completed before a claim can be filed with CSLR. All reasonable steps must be taken to obtain compensation from the finance company before CSLR can be paid.
ASIC’s decision to cancel RDP Group’s AFS license follows previous ASIC decisions. On 16 October 2024, ASIC canceled Ultiqa Lifestyle Promotions Limited’s AFS license and Australian credit license following payment of CSLR. On 19 August 2024, ASIC canceled the AFS licenses of Libertas Financial Planning Pty Ltd (in liquidation) and DOD Bookkeeping Pty Ltd on 7 November 2024.
Similarly, on 10 September 2024, ASIC canceled the Australian credit licenses of Ultimate Credit Management Pty Ltd (in liquidation) and Worry Free Finance Pty Ltd and Ferratum Australia Pty Ltd on 4 October 2024.