Key Insights
- ASIC cancels NextGen Financial’s license after court ordered company wind up in November
- Cancellation effective February 23 under laws allowing license revocation without hearing for insolvent firms
- NextGen permitted to service existing clients regarding arrangement termination until April 16
SYDNEY (MarketsXplora) – Australia’s corporate regulator has canceled the financial services license of NextGen Financial Group after the firm was ordered to be wound up in the Federal Court last November.
The Australian Securities and Investments Commission (ASIC) said the cancellation came into effect on Feb. 23 under laws allowing it to revoke licenses without a hearing when companies enter administration or insolvency.
NextGen, previously known as FinancialLink Group and SJP Insurance Services, was issued the Australian financial services (AFS) license in 2004.
But the Federal Court directed NextGen Financial to be wound up on Nov. 17 last year, prompting ASIC’s cancelation this week.
NextGen can keep providing financial services to existing clients concerning termination of arrangements until April 16 under the cancellation terms.
The company has the right to appeal ASIC’s decision at the Administrative Appeals Tribunal, the regulator said in a statement.
Liquidator Joseph Loebenstein was appointed to NextGen in November when the court ordered the wind-up order after an application by Australia’s tax office.
NextGen Financial is the latest financial firm to lose its operating license in Australia after running into financial trouble, as regulators crack down on the sector.