The Australian Securities & Investments Commission has cancelled the Australian financial services (AFS) licence of Wealth Trail Pty Ltd (In Liquidation) after the Compensation Scheme of Last Resort (CSLR) paid compensation for an unpaid Australian Financial Complaints Authority (AFCA) determination against the firm. AFCA made a determination against Wealth Trail on 14 April 2025, which the firm failed to pay. The CSLR then paid AUD 150,000 in relation to the determination on 11 September 2025 and notified ASIC, leading to ASIC cancelling the AFS licence on 16 October 2025. ASIC noted it must cancel a licensee’s AFS licence where the licensee fails to pay an AFCA determination and the CSLR subsequently pays compensation, and that the cancellation is not subject to discretion or merits review; since the CSLR commenced, ASIC has cancelled ten AFS licences and four credit licences. ASIC specified that Wealth Trail may maintain its AFCA membership for a further 12 months, until 15 October 2026, to allow complaints to be filed with AFCA.
Australian Securities & Investments Commission 2025-10-23
Australian Securities & Investments Commission cancels Wealth Trail’s AFS licence after Compensation Scheme of Last Resort pays AUD 150,000
The Australian Securities & Investments Commission (ASIC) cancelled Wealth Trail Pty Ltd's financial services licence after the Compensation Scheme of Last Resort paid AUD 150,000 for an unpaid Australian Financial Complaints Authority determination. ASIC must cancel a licence when a licensee fails to pay an AFCA determination and the CSLR compensates, with no discretion or merits review. Since the CSLR's inception, ASIC has cancelled ten AFS licences and four credit licences.