ASIC cancels licence of JB Markets
The Australian Securities and Investments Commission (ASIC) has cancelled the Australian Financial Services (AFS) licence of JB Markets Pty Ltd.
The cancellation is effective from 12 April 2024.
According to the regulator, JB Markets has failed to:
- comply with the financial requirements of its AFS licence; and
- have adequate resources to provide the financial services covered by the licence and to carry out supervisory arrangements.
Under the Corporations Act, ASIC may suspend or cancel an AFS licence if a licensee fails to meet its general obligations under section 912A including financial requirements and adequate resourcing.
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 by those who provide financial services.
The cancellation follows the suspension of JB Markets’ AFS licence on 8 November 2023 until 30 April 2024.
JB Markets may apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.
JB Markets held AFS licence number 323182 from 8 July 2008. The licence authorised JB Markets 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.
The licence was suspended as JB Markets:
- had a net deficiency of assets over liabilities for the 2019 to 2022 financial years;
- failed to meet financial holding requirements for the 2019 to 2022 financial years; and
- did not have adequate financial resources to provide the financial services under its AFS licence.
Further, ASIC considered that it was reasonable to believe that JB Markets was likely to breach financial services laws.