ASIC Cancels Viridian Equity Group Licence Following CSLR Compensation Payments

The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial services (AFS) licence held by Viridian Equity Group Pty Ltd. This action follows the payment of compensation to clients by the Compensation Scheme of Last Resort (CSLR).

According to information provided, on October 31, 2024, the Australian Financial Complaints Authority (AFCA) issued three determinations against Viridian Equity. Viridian Equity subsequently failed to make payments on these determinations. Consequently, on March 11, 2025, the CSLR disbursed three payments totaling $450,000 to cover these AFCA determinations and notified ASIC.

As a direct result of this notification from the CSLR, ASIC cancelled Viridian Equity’s AFS licence on April 17, 2025. Under the relevant legislation, where the CSLR provides compensation to an eligible consumer based on an unpaid AFCA determination and informs ASIC of the firm that failed to pay, ASIC is required to cancel the AFS licence or credit licence of that firm. This cancellation process is explicitly stated as not being subject to discretion or merits review.

The CSLR scheme was established in June 2023 and commenced its operations in April 2024. It is authorized to pay eligible consumers up to $150,000 in compensation for unpaid determinations from AFCA relating to specific financial services, including authorized personal financial advice, credit intermediation, securities dealing, or credit provision, provided other eligibility criteria are met. The process requires the completion of the AFCA complaint resolution process first, and all reasonable steps must be taken to obtain compensation directly from the financial firm before a claim can be lodged with the CSLR for payment.

ASIC's decision to cancel Viridian Equity's AFS licence is one of several such actions taken by the regulator since the CSLR began operating. According to ASIC, it has canceled a total of five AFS licences and four credit licenses based on CSLR notifications since the scheme's commencement.