The Australian Securities and Investments Commission (ASIC) has revoked the Australian financial services (AFS) license of Wealth Trail Pty Ltd.
License cancellation follows payment of compensation from the Compensation Scheme of Last Resort (CSLR).
On 14 April 2025, the Australian Financial Complaints Authority (AFCA) entered a judgment against Wealth Trail, which Wealth Trail did not pay. Subsequently, on 11 September 2025, CSLR made a $150,000 AFCA determination payment and notified ASIC. As a result, on 16 October 2025, ASIC revoked Wealth Trail’s AFS licence.
ASIC must cancel a licensee’s AFS license when that licensee fails to pay an AFCA assessment and CSLR then pays compensation.
In making the cancellation order, ASIC clarified that Wealth Trail can maintain its membership of AFCA to allow any complaints to be made to AFCA for an additional 12 months, until 15 October 2026.
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 AFCA judgment related to authorized personal financial advice, credit mediation, securities dealing or the provision of credit 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 Wealth Trail’s AFS license follows previous ASIC decisions. ASIC has canceled ten AFS licenses and four credit licenses since the launch of the CSLR.