The Australian Securities and Investments Commission said today (2 May) it has cancelled the Australian financial services licence (AFS) licence of Brite Advisors Pty Ltd (Brite Advisors) following a payment of compensation by the Compensation Scheme of Last Resort (CSLR).
On 30 September 2024, the Australian Financial Complaints Authority (AFCA) made a determination against Brite Advisors, which it failed to pay.
On 2 April 2025, the CSLR paid $21,888.20 to a person for the AFCA determination and notified ASIC. As a result, on 29 April 2025, ASIC cancelled Brite Advisors’ AFS licence.
The regulator’s statement also said that “although Brite Advisors’ AFS licence is cancelled, this is on the condition, imposed by ASIC, that Brite Advisors must remain a member of AFCA for a period of 12 months, ending on 29 April 2026”.
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 statement concluded.
Last year, II reported Australia’s Federal Court ordered Brite Advisors Pty Ltd (Brite) to “be wound up on just and equitable grounds” following an application by Australian Securities and Investments Commission (ASIC). In a statement on 7 February 2024, ASIC said that at a hearing on 6 February 2024, the Court appointed Linda Smith and Robert Kirman of McGrath Nicol as liquidators to the Australian arm of the global adviser firm and as receivers and managers over the property, assets and undertakings held by Brite on trust for others.
On 21 November 2023, II reported the US Securities and Exchange Commission filed charges on 21 November against “Brite Advisors USA, Inc. (f/k/a deVere USA, Inc.)” for failing to comply with its requirements for “safekeeping of client assets” and for “failing to disclose material risks and conflicts of interest associated with Brite USA’s recommendations to clients to use a related firm in Australia as a custodian”.
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.
AFCA’s 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 Brite Advisors follows previous ASIC decisions to cancel six AFS licences and four credit licenses after CSLR payments to clients.
