ASIC Pulls the Plug on This Retail Broker’s Financial Services License
The
Australian Securities and Investments Commission (ASIC) has revoked the
Australian Financial Services (AFS) license of JB Markets Pty Ltd, effective
from 12 April 2024, citing the company’s failure to meet financial requirements
and maintain adequate resources.
The
cancellation comes after JB Markets’ license was suspended on 8 November 2023 due to the company reporting a net deficiency of assets over liabilities and
failing to meet financial holding requirements for the financial years 2019 to
2022. ASIC also determined that JB Markets did not possess adequate financial
resources to provide the financial services 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.,” the regulatory body stated in a press release.
JB Markets
held AFS license number 323182 from July 2008, which authorized the company to
provide financial product advice, deal in financial products, make a market in
financial products, and operate custodial or depository services for retail and wholesale clients.
Under the
Corporations Act, ASIC is empowered to suspend or cancel an AFS license if a
licensee fails to fulfill its general obligations , which include meeting
financial requirements and ensuring adequate resourcing. JB Markets has the
right to appeal ASIC’s decision by applying to the Administrative Appeals
Tribunal for a review.
ASIC
imposes stringent financial requirements on AFS licensees to ensure they
possess sufficient financial resources to conduct their business in compliance
with financial services laws. These requirements serve as crucial consumer
protection measures, aiming to minimize the risk of a disorderly wind-up in the
event of a business failure.
Over the last year, the regulator issued 332 AFS licenses and suspended 26 of them.
ASIC Wipes Out 3,500
Fraudulent Investment Websites
In March, ASIC
disclosed the achievements of its initiative to combat investment scams. Recent
statistics indicate that since initiating its website takedown capability in
July 2023, approximately 3,500 deceptive investment sites have been removed,
significantly enhancing the protection of Australians against online fraud.
Furthermore,
ASIC elaborated on the successes of its regulatory and enforcement activities.
Over the six months ending December 31, 2023, ASIC obtained nearly $60
million in civil penalties and successfully facilitated nine criminal
convictions.
The
revocation of JB Markets’ license reminds us of the importance of
adhering to financial regulations and maintaining adequate resources in the
financial services industry.
The
Australian Securities and Investments Commission (ASIC) has revoked the
Australian Financial Services (AFS) license of JB Markets Pty Ltd, effective
from 12 April 2024, citing the company’s failure to meet financial requirements
and maintain adequate resources.
The
cancellation comes after JB Markets’ license was suspended on 8 November 2023 due to the company reporting a net deficiency of assets over liabilities and
failing to meet financial holding requirements for the financial years 2019 to
2022. ASIC also determined that JB Markets did not possess adequate financial
resources to provide the financial services 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.,” the regulatory body stated in a press release.
JB Markets
held AFS license number 323182 from July 2008, which authorized the company to
provide financial product advice, deal in financial products, make a market in
financial products, and operate custodial or depository services for retail and wholesale clients.
Under the
Corporations Act, ASIC is empowered to suspend or cancel an AFS license if a
licensee fails to fulfill its general obligations , which include meeting
financial requirements and ensuring adequate resourcing. JB Markets has the
right to appeal ASIC’s decision by applying to the Administrative Appeals
Tribunal for a review.
ASIC
imposes stringent financial requirements on AFS licensees to ensure they
possess sufficient financial resources to conduct their business in compliance
with financial services laws. These requirements serve as crucial consumer
protection measures, aiming to minimize the risk of a disorderly wind-up in the
event of a business failure.
Over the last year, the regulator issued 332 AFS licenses and suspended 26 of them.
ASIC Wipes Out 3,500
Fraudulent Investment Websites
In March, ASIC
disclosed the achievements of its initiative to combat investment scams. Recent
statistics indicate that since initiating its website takedown capability in
July 2023, approximately 3,500 deceptive investment sites have been removed,
significantly enhancing the protection of Australians against online fraud.
Furthermore,
ASIC elaborated on the successes of its regulatory and enforcement activities.
Over the six months ending December 31, 2023, ASIC obtained nearly $60
million in civil penalties and successfully facilitated nine criminal
convictions.
The
revocation of JB Markets’ license reminds us of the importance of
adhering to financial regulations and maintaining adequate resources in the
financial services industry.
