CSLR pays out on firm AFCA expelled in 2021 | Australian Markets
A financial providers firm which the Australian Financial Complaints Authority (AFCA) expelled in early 2021 has had its Australian Financial Services License (AFSL) cancelled as a result of its purchasers obtained compensation by way of the Compensation Scheme of Last Resort (CSLR).
The firm, Viridian Equity Group Pty Ltd, was listed as being non-compliant as far back as March, 2021, as a result of it had didn’t pay its AFCA levy.
ASIC mentioned that the firm had didn’t pay three AFCA determinations.
The CSLR was not formally established till June 2023 and commenced operations in April, 2024.
ASIC mentioned that on 31 October 2024, AFCFA made three determinations towards Viridian Equity, which Viridian Equity didn’t pay. Subsequently, on 11 March 2025, the CSLR paid three funds totalling $450,000.00 for the AFCA determinations and notified ASIC. As a outcome, on 17 April 2025, ASIC cancelled Viridian Equity’s AFS licence.
Where the CSLR pays compensation to an eligible shopper in relation to an AFCA dedication and notifies ASIC of the small print of the firm that didn’t pay the compensation, ASIC should cancel the AFS licence or credit licence of the firm.
The cancellation shouldn’t be subject to discretion or deserves review.
On 4 March 2021 AFCA printed a record of 34 financial companies which had didn’t pay their AFCA membership levy and mentioned the companies and authorised credit representatives “have been expelled from membership of AFCA”.
That record included Viridian Equity Group Limited.
Documents supplied to a Parliament Committee reveal that Viridian Equity Group was concerned in the promotion of a Managed Investment Scheme (MIS) with AFCA receiving a formal grievance from buyers in July, 2018.
The paperwork revealed that the investments dated from December, 2011 and that, initially at the least, AFCA had informed the affected buyers that they the authority wouldn’t be taking motion as a result of the firm didn’t maintain present AFCA membership.
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