AFCA not to progress complaints about Quattro Capital
There has been a rather dismal bit of news for clients of the Mayfair group of companies, including authorised representative Quattro Capital Group Pty Ltd.
Today, the Australian Financial Complaints Authority (AFCA) confirmed that it will no longer be progressing complaints about Quattro Capital.
First off, let’s explain that the Mayfair group of companies are not members of AFCA and AFCA cannot consider complaints made directly against the financial firm.
AFCA previously accepted complaints lodged against a Mayfair authorised representative Quattro Capital. Due to Quattro Capital not meeting its AFCA membership obligations, AFCA expelled Quattro Capital in March 2021.
AFCA’s ability to progress a complaint against Quattro Capital is extremely limited as the body does not believe there is any real prospect of any remedy or award made against Quattro Capital being complied with.
For this reason, AFCA will not be progressing complaints about Quattro Capital at this point in time. However, the body will continue to monitor the situation and update complainants accordingly.
If you have a complaint against Quattro Capital or the Mayfair group of companies, you may wish to consider other avenues of action, such as legal proceedings. AFCA recommends that you seek independent legal advice about your other options.
The Federal Government is working towards introducing a Compensation of Last Resort (CLRS) which would allow consumers to be compensated when they experience misconduct and lose out due to a financial firm that is no longer able to pay.
Consumers with complaints against Quattro Capital or Mayfair may be eligible for a payment under CLRS. However, the structure, eligibility criteria and the process of the CLRS is not yet determined.
Let’s recall that, in April 2020, ASIC commenced proceedings in the Federal Court of Australia against the Mayfair group of companies. On April 16, 2020, the Federal Court made interim orders restraining Mayfair group of companies from promoting their debenture products and prohibiting the use of specific words and phrases in their advertising.