The Australian Securities and Investment Commission (ASIC) has announced that it has cancelled the Australian financial services licence (AFSL) of Libertas Financial Planning, a former financial adviser.
Australian Watchdog Cancels Libertas Financial Planning’s Licence
According to the regulator’s press statement, this is the first time that it has cancelled an AFSL after a compensation payment by the Compensation Scheme of Last Resort (CSLR). This scheme aims to help victims who suffered losses due to financial misconduct and restore faith in the Australian finance industry.
Established in June 2023, the CSLR started operating in April 2024 and pays up to $150,000 AUD in compensation to those “who have an unpaid determination from the Australian Financial Complaints Authority (AFCA) relating to authorised personal financial advice, credit intermediation, securities dealing or credit provision, and where other eligibility criteria are met”.
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Before consumers can lodge a CSLR claim, they must take all reasonable steps to obtain compensation from the financial institution in question. CSLR compensation payments are only realised once these conditions are met.
The AFCA determined that Libertas neglected to pay monies due on 24 July 2023. The CSLR paid an undisclosed amount to the claimant on 24 July 2024, and ASIC cancelled the firm’s financial services licence on 14 August 2024.
In its media statement, ASIC stated that this cancellation “is not subject to discretion or merits review”.
On 3 November 2023, the financial watchdog published a notice that Libertas Financial Planning is under liquidation and that Christopher Palmer was appointed as liquidator.
