ASIC has cancelled the Australian financial services licence (AFS) of Calaite Capital Partners Pty Ltd (Calaite Capital) following a payment of compensation by the Compensation Scheme of Last Resort (CSLR).
On 8 July 2024 and 31 October 2024, the Australian Financial Complaints Authority (AFCA) made two determinations against Calaite Capital, which Calaite Capital failed to pay. Subsequently, on 2 April 2025, the CSLR paid two payments totalling $267,235.57 for the AFCA determinations and notified ASIC. As a result, on 5 May 2025, ASIC cancelled Calaite Capital's AFS licence.
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.
The AFCA 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 Calaite Capital follows previous ASIC decisions. ASIC has cancelled seven AFS licences and four credit licences since the commencement of the CSLR.
See:
- 25-067MR ASIC cancels licence of Brite Advisors Pty Ltd
- 25-064MR ASIC cancels licence of Viridian Equity Group Pty Ltd
- 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
