ASIC Revokes Financial Services License of Retail Broker JB Markets
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
The Australian Securities and Investments Commission (ASIC) has canceled the license of JB Markets Ltd. According to the announcement, the company did not maintain adequate resources and failed to meet financial requirements.
ASIC revoked the license after the platform’s license was suspended on November 8, last year. JB Market reported a net deficit of assets over liabilities, which prompted ASIC to go ahead with the suspension.
The financial regulator stated that JB Markets did not provide enough financial resources to offer financial services under the AFS license.
JB Markets Can Apply For A Review Of The Cancellation
JB Markets has been holding the AFS license since 2008. The license enabled the firm to offer financial services and products. It also allows the firm to operate depository or custodial services and deal in financial products.
According to the Corporations ACT, ASIC has the power to cancel or suspend a company holding an AFS license if it fails to meet the regulatory requirements. While the cancellation is taking effect this April, JB Markets still has the right to appeal the regulator’s decision. The firm can apply for a review of the decision.
ASIC has been serious about protecting the interest of consumers of financial resources. The financial watchdog places strong financial requirements on license holders to make sure they have the necessary financial resources to operate within the jurisdiction. The requirements serve as important consumer protection measures that reduce the risk of an abrupt closure of a business or business failure. ASIC has issued 332 AFS licenses over the last year. Out of these, it has suspended 26 of them.
ASIC Closed Over 3,500 Fake Investment Platforms
ASIC has also been very active in its clean-up exercise in the financial market. The regulator recently stated that it has closed down more than 3.500 fake investment platforms since it became authorized to take down fraudulent websites.
ASIC usually swings into action after confirming that a website or investment platform is fake or fraudulent. In some cases, the regulator deals with cloned websites
ASIC has also revealed its regulatory and enforcement journey. The regulator has also stated that it has recorded immense success in its enforcement activities over the past six months.
During the period, it collected close to $60 million in civil penalties and has successfully concluded nine criminal convictions. The latest license revocation is another reminder of the importance of following rules and regulations for financial services providers.
