Australia’s Financial Regulator Cancels Libertas Financial Planning License

The Australian Securities and Investments Fee has revoked the license of Libertas Monetary Planning Pty Ltd. Based on the regulator’s announcement at the moment (Monday), the revocation of the corporate’s Australian monetary providers license marks the primary time the regulator has taken motion beneath the newly operational Compensation Scheme of Final Resort (CSLR) in paying out compensation to a buyer.

The CSLR, which began in April 2024, was created to guard shoppers who’ve suffered monetary losses because of the misconduct of licensed corporations however have been unable to get well compensation.

The scheme can reportedly pay out as much as $150,000 to eligible shoppers who’ve an unpaid willpower from the Australian Monetary Complaints Authority (AFCA) in relation to issues corresponding to monetary recommendation, securities buying and selling and credit score broking.

The regulator mentioned it took this motion because of AFCA’s resolution in opposition to Libertas Monetary Planning on July 24, 2023, which the corporate was unable to adjust to.

We’ve got revoked the Australian monetary providers license of former monetary advisory agency Libertas Monetary, the primary such cancellation following a cost of compensation by the Compensation Scheme of Final Resort https://t.co/jMMgjEGr6u

— ASIC Media (@asicmedia) August 19, 2024

The CSLR subsequently intervened and paid compensation to the affected shopper on July 24, 2024. In response, ASIC canceled Libertas Monetary Planning’s AFSL on August 14, 2024, following discover from the CSLR.

Compensation cost

Final month, ASIC took motion in opposition to United World Capital (UGC) and its director. The regulator banned Joel James Hewish from the monetary providers trade for ten years and revoked UGC’s monetary providers license.

ASIC reportedly discovered that UGC’s licensed representatives engaged in questionable practices, together with recommending purchasers arrange self-managed superannuation funds and put money into speculative merchandise associated to Hewish.

As well as, ASIC just lately issued new steerage for unlicensed entities and AFS licensees. The scheme issues unsolicited contact that results in monetary recommendation. The regulation highlighted the authorized obligations and compliance obligations for entities engaged in unsolicited and digital contact with shoppers and underlined the necessity to comply with monetary providers laws.

Based on the regulator, entities that facilitate monetary transactions, affect shopper selections or perform digital interactions associated to monetary recommendation require an AFS license or applicable authorization.