The Australian Securities and Investments Commission (ASIC) has awarded the Australian Financial Services (AFS) License and Australian Credit License of Ultica Lifestyle Promotions Limited (in liquidation) following the payment of compensation under the Last Resort Compensation Scheme (CSLR). canceled.
On 28 June 2024, the Australian Financial Complaints Authority (AFCA) entered judgment against Urtica, but Urtica failed to pay. Then, on 2 October 2024, CSLR paid $19,429.60 to a person seeking an AFCA decision and notified ASIC. As a result, ASIC canceled Ultiqa’s AFS and credit license on October 16, 2024.
If CSLR pays compensation to eligible consumers in connection with an AFCA decision and notifies ASIC of details of a business that has not paid compensation, ASIC must revoke that business’ Australian financial services license and credit license. It doesn’t have to be.
Cancellations are not subject to discretion or merit review.
This is not ASIC’s first regulatory action regarding Ultiqa. On 3 November 2021, ASIC commenced proceedings against Ultiqa. On May 17, 2022, the court ruled that between October 2017 and March 2019, a financial advisor acting as an authorized representative of Urtica advised consumers that such advice was in the consumer’s best interest. It was found that he had advised investors to invest in the Urtica Lifestyle Scheme, a timeshare scheme, even though it was not in their interest to do so. Things that are not appropriate for our situation.
CSLR will be established in June 2023 and begin operations in April 2024. Compensation of up to $150,000 can be paid to consumers who have received a non-payment determination from AFCA regarding licensed personal financial advice, credit brokerage, securities transactions or credit extensions. Meet the eligibility criteria.
Before filing a complaint with CSLR, you must complete the AFCA complaint process. You must take all reasonable steps to obtain compensation from your finance company before a CSLR payment is made.
ASIC’s decision to revoke the AFS license and Ultiqa’s Australian credit license follows previous ASIC decisions. On 19 August 2024, ASIC canceled the AFS license of Libertas Financial Planning Pty Ltd (in liquidation) following payment of CSLR. Similarly, ASIC granted the Australian credit licenses of Ultimate Credit Management Pty Ltd (in liquidation) and Worry Free Finance Pty Ltd on 10 September 2024 and the Australian credit licenses of Ferratum Australia Pty Ltd on 4 October 2024. has been canceled.
