CSLR pays $267,235 ASIC cancels AFSL
The Australian Securities and Investments Commission (ASIC) has cancelled the Australian Financial Services License of a Calaite Capital following compensation by the Compensation Scheme of Last Resort (CSLR).
Calaite Capital, based in Sydney, promoted itself as holding a license to provide financial services and product to wholesale clients.
ASIC’s announcement that it had cancelled the Calaite Capital license said that on 8 July 2024 and 31 October 2024 the Australian Financial Complaints Authority made two determinations against Calaite Capital, which the company failed to pay.
It said that, subsequently, on 2 April, this year, the CSLR paid two payments totalling $267,235.57 for the AFCA determinations and that as a result ASIC had cancelled Calait Capital’s AFSL.
The AFCA determination found that a corporate authorised representative of two financial firms, including Calaite Capital, employed a corporate authorised representative who made false representations about an investment that did not exist.
The AFCA determination found the CAR had provided personal financial advice and said there was no evidence that the investment actually existed.
Both firms which were subject to the AFCA determination claimed they were not liable for the conduct of the CAR because she was only authorised to provide advice to wholesale investors.
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