ASIC cancels AFS license of JB Markets

Description

According to ASIC's official website, ASIC has decided to cancel the Australian Financial Services (AFS) license of JB Markets Pty Ltd (JB Markets) effective from 12 April 2024.

About JB Markets

On WikiFX, JB Markets has been given a very low score of 1.51/10. Now, we know that the regulation with license number: 323182 is revoked. Therefore, we advise traders to avoid this broker as possible as they can.

The Cancelation

Under the Corporations Act, ASIC may suspend or cancel an AFS license if a licensee fails to meet its general obligations under section 912A including financial requirements and adequate resourcing.

Under the Corporations Act, ASIC considers that canceling the JB Markets AFS license 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 (23-304MR).

JB Markets may apply to the Administrative Appeals Tribunal for a review of ASICs decision.

Background

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

JB Markets held AFS licence number 323182 from 8 July 2008. The license authorized 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 license 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 financial services under its AFS license.

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