The Australian Securities and Investments Commission (ASIC) said on Tuesday that it has cancelled the Australian financial services (AFS) licence of Calaite Capital Partners Pty Ltd.
ASIC Cancels Calaite Capital Partners Licence
The move comes after compensation was paid to consumers under the Compensation Scheme of Last Resort (CSLR).
ASIC said Calaite Capital failed to comply with two determinations issued by the Australian Financial Complaints Authority (AFCA) on 8 July and 31 October 2024.
The firm did not pay the required compensation, prompting the CSLR to step in on 2 April 2025 with payments totalling $267,235.57.
As required by law, ASIC cancelled the firm’s AFS licence on 5 May 2025. Under CSLR legislation, when a firm fails to meet its obligations and the CSLR pays compensation, ASIC must cancel the relevant licence without discretion or review.
The CSLR, which began operating in April 2024, can provide up to $150,000 in compensation per claim in cases involving authorised personal financial advice, securities dealing, credit provision, or credit intermediation, once all avenues for recovery from the firm have been exhausted.
Calaite Capital is one of several firms to face regulatory action since the CSLR was established. ASIC has now cancelled a total of seven AFS licences and four credit licences in connection with unpaid AFCA determinations.
