The Australian Securities and Investments Commission announced the cancellation of several financial services licenses last week. The licenses were revoked from Jels Financial Group Pty Ltd and Selectinvest Pty Ltd due to the lack of audited financial statements reporting, among other irregularities.
ASIC reported that in the case of Jels Financial Group the company failed to nominate a new “key person” under its license following the death of the already designated individual. Furthermore, the regulator stated that “Jels’ sole corporate authorized representative was also insolvent.”
For Selectinvest the regulator noted that the company “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.”
Interestingly, Selectinvest had held an AFS license since December of 2003, raising the question why it would become the target of enforcement actions now, having been in business and maintaining a license for so many years. Likewise, it remains a mystery as to why the regulator has waited for a considerable amount of time to cancel the license given that the alleged lapses in required activities took place as early as 2017.
All traders and investors are encouraged to check their brokerages using publicly available information to ensure their funds and trading accounts are safe.