November 27, 2020 | AtoZ Markets –The Australian Securities and Investments Commission (ASIC) on Friday announced canceling the Australian financial services (AFS) license of Victorian financial services provider Jels Financial Group Pty Ltd (Jels).
Why ASIC canceled the AFS license of Jels Financial Group?
ASIC canceled the license because Jels failed to demonstrate that it had the competence or resources to provide financial services as required under its license.
ASIC required Jels to have a ‘key person’ under the terms of its AFS license. Following the death of its key person, Jels failed to appoint a new key person. Jels’ sole corporate authorized representative was also insolvent.
Jels also failed to lodge its audited accounts for the 2017-19 financial years. AFS licensees must lodge their financial statements and auditor’s reports annually. Licensees must do this to demonstrate they have the financial resources to provide the services covered by their license and to conduct their business lawfully.
Jels held AFS license no. 461971 since 24 September 2014.
ASIC Selectinvest AFS license cancellation - what's the reason behind it?
ASIC has also canceled the AFS license of Western Australian financial services provider, Selectinvest Pty Ltd (Selectinvest).
According to the Australian watchdog, Selectinvest license was canceled because the firm failed to maintain its external dispute resolution membership with the Australian Financial Complaints Authority (AFCA) and had failed to lodge its annual financial and audit reports since 2017.
Selectinvest has held AFS license no. 240774 since December 8, 2003. Selectinvest, however, may review ASIC's decision by applying to the Administrative Appeals Tribunal (AAT).
Under the Corporations Act, ASIC may suspend or cancel an AFS license if the licensee fails to meet its obligations under s912A. This includes the obligation to hold membership in a dispute resolution system.
AFS licensees must lodge their financial statements and auditor’s reports annually.
ASIC expects AFS licensees to do all things necessary to meet their obligations under financial services laws, comply with their license conditions, and ensure that the financial services covered by the license are provided efficiently, honestly, and fairly.
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