The Australian Securities & Investments Commission (ASIC) has cancelled the Australian financial services (AFS) licence of Brite Advisors Pty Ltd after the Compensation Scheme of Last Resort (CSLR) paid AUD 21,888.20 to a consumer to satisfy an unpaid Australian Financial Complaints Authority (AFCA) determination against the firm. AFCA made the determination on 30 September 2024 and Brite Advisors did not pay it. Following the CSLR payment on 2 April 2025 and notification to ASIC, ASIC cancelled the licence on 29 April 2025 and imposed a condition requiring Brite Advisors to remain an AFCA member for 12 months, until 29 April 2026. ASIC highlighted that, where the CSLR pays compensation for an AFCA determination and identifies the non-paying firm, ASIC must cancel the firm’s AFS or credit licence and the cancellation is not subject to discretion or merits review. The CSLR was established in June 2023 and began operating in April 2024, and can pay up to AUD 150,000 for unpaid AFCA determinations in areas including authorised personal financial advice, credit intermediation, securities dealing and credit provision, subject to eligibility criteria. ASIC noted that it is investigating Brite Advisors and that the decision follows earlier cancellations of six AFS licences and four credit licences after CSLR payments.
Australian Securities & Investments Commission 2025-05-02
Australian Securities & Investments Commission cancels Brite Advisors’ AFS licence after CSLR pays AUD 21,888.20 for unpaid AFCA determination
ASIC has cancelled Brite Advisors Pty Ltd's financial services licence after the CSLR paid AUD 21,888.20 for an unpaid AFCA determination. This action is mandatory when CSLR compensates for an AFCA ruling. Brite Advisors must stay an AFCA member for 12 months. ASIC is investigating Brite Advisors, following similar licence cancellations.