The Australian Securities and Investments Commission (ASIC) has cancelled the Australian Financial Services Licence (AFSL) of RPD Group Advice 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.
This is not the first time that an unpaid AFCA determination and subsequent CSLR payment have led to an AFSL being cancelled, with the corporate regulator taking the action against Libertas in August.
Libertas, which was acquired by Sequoia Financial Group in August 2019, went into liquidation in May 2023. In a statement at the time, Sequoia said it planned to consolidate AFS licences, with management making the decision to transfer Libertas’ operations and customers to InterPrac Financial Planning and Sequoia Wealth Management.
The former dealer group is now managed by an external company.
An AFCA determination had previously been made against Libertas on 24 July 2023, but this was not paid by the firm. As a result, the CSLR paid an unspecific amount of compensation to the person on 24 July 2024 and notified ASIC, which prompted the cancellation.
In October, ASIC also cancelled the AFSL and Australian Credit Licence of Ultiqa Lifestyle Promotions Limited on the back of a CSLR payment, while it also cancelled the AFSL of DOD Bookkeeping in November.
