The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial services (AFS) licence of Viridian Equity Group Pty Ltd following a payment of compensation by the Compensation Scheme of Last Resort (CSLR).

On 31 October 2024, the Australian Financial Complaints Authority (AFCA) made three determinations against Viridian Equity, which Viridian Equity failed to pay. Subsequently, on 11 March 2025, the CSLR paid three payments totalling $450,000 for the AFCA determinations and notified ASIC.

As a result, on 17 April 2025, ASIC cancelled Viridian Equity’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.

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 Viridian Equity follows previous ASIC decisions. ASIC has cancelled five AFS licences and four credit licenses since the commencement of the CSLR.