The Australian Securities and Investments Commission (ASIC) has canceled the Australian Financial Services (AFS) license of JB Markets Pty Ltd, effective from April 12, 2024, citing the company’s inability to meet financial obligations and maintain adequate resources.
The revocation follows the suspension of JB Markets’ license on November 8, 2023, prompted by the company’s disclosure of a net asset deficiency and failure to meet financial holding requirements for the fiscal years 2019 to 2022. ASIC also found JB Markets lacking adequate financial resources to deliver the financial services stipulated under its AFS license.
“ASIC considers that canceling JB Markets AFS license will protect the interests of potential consumers, promote confidence in the financial services industry, and encourage professionalism by those who provide financial services,” stated the regulatory body in a press release.
JB Markets had been assigned AFS license number 323182 since July 2008, enabling the company to offer financial product advice, engage in financial product transactions, act as a market maker for financial products, and operate custodial or depository services for both retail and wholesale clients.
As per the Corporations Act, ASIC has the authority to suspend or revoke an AFS license if the licensee fails to fulfill its general obligations, including meeting financial requirements and ensuring sufficient resourcing. JB Markets retains the option to contest ASIC’s decision by seeking a review from the Administrative Appeals Tribunal.
Read more: FX Newsroom
ASIC imposes rigorous financial standards on AFS licensees to ensure they possess adequate financial resources to conduct their operations in compliance with financial services laws. These standards serve as crucial safeguards for consumers, aiming to mitigate the risk of a chaotic winding-up in case of business insolvency.
In the past year, ASIC granted 332 AFS licenses and suspended 26 of them.
