The Australian Securities and Investments Commission has canceled Libertas Financial Planning Pty Ltd's license. According to the regulator's announcement today (Monday), the cancellation of the Australian financial services license marks the first time the regulator has taken such action under the newly operational Compensation Scheme of Last Resort (CSLR) in a compensation payout to a client.

Consumer Protection

The CSLR, which commenced operations in April 2024, was created to protect consumers who have suffered financial losses due to the misconduct of licensed firms but have been unable to recover compensation.

The scheme can reportedly pay up to $150,000 to eligible consumers who have an unpaid determination from the Australian Financial Complaints Authority (AFCA) relating to issues such as financial advice, securities dealing, and credit intermediation.

The regulator mentioned that it took this action as a result of AFCA's determination against Libertas Financial Planning on 24 July 2023, which the firm failed to satisfy.

We have cancelled the Australian financial services licence of former financial advice business Libertas Financial, the first such cancellation following a payment of compensation by the Compensation Scheme of Last Resort https://t.co/jMMgjEGr6u

— ASIC Media (@asicmedia) August 19, 2024

Subsequently, the CSLR stepped in and made a compensation payment to the affected client on 24 July 2024. ASIC, in response, canceled the AFSL of Libertas Financial Planning on 14 August 2024, following notification from the CSLR.

Compensation Payment

Last month, ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term took action against United Global Capital (UGC) and its Director. The regulator banned Joel James Hewish from the financial services industry for ten years and canceled UGC's financial services license.

ASIC reportedly found that UGC's authorized representatives engaged in questionable practices, including recommending that clients create self-managed superannuation funds and invest in speculative products related to Hewish.

In addition, ASIC recently issued a new guideline for unlicensed entities and AFS licensees. The regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term relates to unsolicited contact leading to financial advice. The regulation highlighted the legal responsibilities and compliance obligations for entities engaging in unsolicited and digital contact with consumers and underscored the need to follow financial services laws.

According to the regulator, entities facilitating financial transactions, influencing consumer decisions, or engaging in digital interactions related to financial advice require an AFS license or appropriate authorization.