ob体育 has cancelled the Australian financial services licence (AFS licence) of DOD Bookkeeping Pty Ltd (in liquidation) (DOD) following a payment of compensation by the Compensation Scheme of Last Resort (CSLR).
On 29 March 2024, the Australian Financial Complaints Authority (AFCA) made a determination against DOD, which DOD failed to pay. Subsequently, on 23 October 2024, the CSLR paid two payments totalling $64,860.05 for the AFCA determination and notified ob体育. As a result, on 7 November 2024, ob体育 cancelled DOD鈥檚 AFS licence.
Where the CSLR pays compensation to an eligible consumer in relation to an AFCA determination and notifies ob体育 of the details of the firm that failed to pay the compensation, ob体育 must cancel the AFS licence or credit licence of the firm.
The cancellation is not subject to discretion or merits review.
Background
This decision is not ob体育鈥檚 first regulatory action in relation to DOD, which is now in liquidation. On 17 May 2021, ob体育 commenced proceedings against DOD for allegations of breaching the prohibition against conflicted remuneration, and failed to provide appropriate financial advice and discharge its bests interests duty in relation to financial advice to selected clients. The matter was heard on 2 and 3 December 2021. The judgement has been reserved (21-106MR).
ob体育鈥檚 decision to cancel the AFS licence of DOD follow previous ob体育 decisions. On 16 October 2024, ob体育 cancelled the AFS licence and the Australian credit licence of Ultiqa Lifestyle Promotions Limited (24-233MR). On 19 August 2024, ob体育 cancelled an AFS licence of Libertas Financial Planning Pty Ltd (in liquidation) following a CSLR payment (24-181MR). Similarly, on 10 September 2024, ob体育 cancelled Australian credit licences of Ultimate Credit Management Pty Ltd (in liquidation) and Worry Free Finance Pty Ltd (24-210MR), and finally, Ferratum Australia Pty Ltd on 4 October 2024 (24-223MR).
More information
- The contains more information about the AFCA complaint process.
- The contains more information about the CSLR claims process.
Editor's note:
The media release had previously stated that $64,860.05 was paid to a person. In fact, the CSLR made two payments totalling $64,860.05 for the AFCA determination. The release has been updated to reflect this.