ASIC cancels AFS licences of Jels Financial Group and Selectinvest

The Australian Securities and Investments Commission (ASIC) announced canceling the Australian financial services (AFS) licences of two companies – Jels Financial Group Pty Ltd and Selectinvest Pty Ltd.

ASIC cancelled Jels Financial’s AFS licence because the company failed to demonstrate that it had the competence or resources to provide financial services as required under its licence.

Under the terms of its AFS licence, the company was required to have a ‘key person’. After the death of its key person, the company failed to appoint a new person to that position Jels Financial’ sole corporate authorised representative was also insolvent.

ASIC, AFS licence

The company also failed to lodge its audited accounts for the 2017-19 financial years. Companies holding an AFS licence must lodge their financial statements and auditor’s reports annually.

ASIC decided to cancel Selectinvest’s licence because 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.

AFS licensees must demonstrate they have the financial resources to provide the services covered by their licence and to conduct their business lawfully.

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