Key Insights
- ASIC has cancelled the financial services licence of JB Markets Pty Ltd effective April 12, 2024.
- The cancellation is due to JB Markets’ failure to comply with financial requirements and lack of adequate resources.
- ASIC had previously suspended JB Markets’ licence in November 2023 citing similar concerns.
SYDNEY (MarketsXplora) – The Australian Securities and Investments Commission (ASIC) has cancelled the Australian Financial Services (AFS) licence of JB Markets Pty Ltd, the regulator said on Monday, citing failures by the company to comply with financial requirements and resourcing obligations.
The cancellation took effect from April 12, according to ASIC’s statement. It said JB Markets failed to meet the financial requirements of its licence and lacked adequate resources to provide the authorised financial services and carry out supervisory arrangements.
Under the Corporations Act, the watchdog can suspend or cancel an AFS licence if the holder fails to meet general obligations including sufficient capital levels and staffing.
“ASIC considers that cancelling JB Markets’ AFS licence will protect the interests of potential consumers, promote confidence in the financial services industry, and encourage professionalism,” the regulator said.
The cancellation comes after ASIC suspended JB Markets’ licence in November last year through to April 30, 2024. The firm can apply for a review of the decision by the Administrative Appeals Tribunal.
Read also! Australia Watchdog Cancels Crown Wealth Licence After Administration Filing
JB Markets, which has held its licence since 2008, was authorised to provide financial advice, deal in products, make markets and offer custody services to retail and institutional clients.
ASIC suspended the licence as JB Markets had negative net assets from 2019 to 2022, failed to meet cash reserve rules during that period and lacked sufficient financial resources. There were also reasonable grounds to believe it was likely to breach financial services laws.