ASIC Cancels AFS Licence of RPD Group Advice Following CSLR Payment

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The Australian Securities and Investments Commission (ASIC) has revoked the Australian financial services (AFS) licence of RPD Group Advice Pty Ltd, following a compensation payment made by the Compensation Scheme of Last Resort (CSLR). The CSLR had paid $62,421.00 to a customer, compensating them for a determination made by the Australian Financial Complaints Authority (AFCA).

The decision to cancel the AFS licence was triggered after RPD Group failed to meet the compensation obligations set by AFCA. According to ASIC regulations, if a financial firm fails to pay an AFCA determination, and the CSLR steps in to cover the payment, ASIC is mandated to cancel the firm's AFS or credit licence.

The CSLR, which commenced operations in April 2024, was established to assist consumers who are unable to obtain compensation after the AFCA's complaint process. The scheme can provide up to $150,000 in compensation for eligible consumers. However, the CSLR only makes payments after a complete AFCA complaint process and when all other avenues for compensation have been exhausted.

ASIC's action against RPD Group follows similar regulatory decisions against other firms. In October 2024, ASIC revoked the AFS and credit licences of Ultiqa Lifestyle Promotions Limited after a CSLR payment. Other firms, including Libertas Financial Planning and DOD Bookkeeping, also had their AFS licences cancelled earlier in the year for similar reasons.