ASIC has cancelled the Australian financial services licence (AFS) licence of Brite Advisors Pty Ltd (Brite Advisors) following a payment of compensation by the Compensation Scheme of Last Resort (CSLR).
On 30 September 2024, the Australian Financial Complaints Authority (AFCA) made a determination against Brite Advisors, which it failed to pay. On 2 April 2025, the CSLR paid $21,888.20 to a person for the AFCA determination and notified ASIC. As a result, on 29 April 2025, ASIC cancelled Brite Advisors’ AFS licence.
Although Brite Advisors’ AFS licence is cancelled, this is on the condition, imposed by ASIC, that Brite Advisors must remain a member of AFCA for a period of 12 months, ending on 29 April 2026.
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.
Background
The CSLR was established in June 2023, commencing operations in April 2024. It can pay up to $150,000 in compensation to consumers who have an unpaid determination from AFCA relating to authorised personal financial advice, credit intermediation, securities dealing or credit provision, and where other eligibility criteria are met.
AFCA’s complaint process must first be completed before a claim can be lodged with the CSLR. All reasonable steps to obtain compensation from the financial firm must be taken before a CSLR payment can be made.
ASIC’s decision to cancel the AFS licence of Brite Advisors follows previous ASIC decisions to cancel six AFS licences and four credit licenses after CSLR payments to clients.
See:
- 24-262MR ASIC cancels licence of RPD Group Advice Pty Ltd
- 24-256MR ASIC cancels licence of DOD Bookkeeping Pty Ltd
- 24-233MR ASIC cancels the Australian financial services and credit licences of Ultiqa Lifestyle Promotions Limited
- 24-181MR ASIC cancels licence of Libertas Financial Planning
- 24-210MR ASIC cancels licences of Ultimate Credit Management Pty Ltd and Worry Free Finance Pty Ltd
- 24-223MR ASIC cancels licence of Ferratum Australia Pty Ltd
- 25-064MR ASIC cancels licence of Viridian Equity Group Pty Ltd
More information
- ASIC’s investigation into Brite Advisors is a key ASIC enforcement matter. Further information about ASIC’s investigation can be found here.
- The contains more information about the AFCA complaint process.
- The contains more information about the CSLR claims process.