The Australian Securities and Investment Committee (ASIC) said on Monday that it had canceled the Australian Financial Services license (AFS) for the PTY LTD.
This step follows the payment of compensation paid by the compensation scheme in the last resort (CSLR).
The procedure stems from Verdian’s failure to comply with three decisions taken by the Australian Financial Complaints Authority (AFCA) on October 31, 2024.
After the company failed to pay the required compensation, the CSLR intervened on March 11, 2025, which made three payments totaling $ 450,000 on behalf of the viral stocks and the notification of ASIC.
Under the legislation, when CSLR pays a compensation and ASIC, the regulator is obligated to cancel AFS or related credit license. The cancellation is mandatory and is not subject to the authority of appreciation or review.
CSLR, which was established in June 2023 and operating from April 2024, provides up to $ 150,000 as compensation for qualified consumers who have unpaid decisions in AFCA in specific financial services, such as personal financial advice and securities.
ASIC cancellation of viral stocks is the latest enforcement procedure since the creation of CSLR, as the regulator has canceled five AFS licenses and four credit licenses so far.
Consumers must first exhaust the AFCA complaint process and find a recovery from the financial company before applying for CSLR compensation.