ASIC cancels AFSL of JB Markets

The Australian Securities and Investments Commission (ASIC) has cancelled the Australian Financial Services Licence (AFSL) of JB Markets effective from 12 April 2024.

ASIC said JB Markets failed to comply with the financial requirements of its AFSL and failed to 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 AFSL if a licensee fails to meet its general obligations under section 912A including financial requirements and adequate resourcing.

ASIC said it determined cancelling JB Markets' AFSL would 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' AFSL on 8 November 2023 after ASIC found it 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 AFSL.

Further, ASIC found it was reasonable to believe that JB Markets was likely to breach financial services laws.

"ASIC imposes financial requirements upon AFS licensees to help ensure that they have sufficient financial resources to conduct their business in compliance with financial services laws," ASIC said.

"The requirements provide important consumer protections in seeking to reduce the risk of a disorderly wind-up, in the event the business fails."

JB Markets had held its AFSL since 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.

JB Markets may apply to the Administrative Appeals Tribunal for a review of ASIC's decision.