The Australian Securities and Investments Commission (ASIC) has cancelled the Australian Financial Services (AFS) licences of two financial services providers, including Jels Financial Group Pty Ltd and Selectinvest Pty Ltd.

Cancel! ASIC cancelled the AFS licences of two financial company entities, including Jels

Jels Financial Group Pty Ltd has held an AFS licence (No. 461971) since 24 September 2014, and ASIC cancelled Jels' AFS licence because Jels could not demonstrate that it had sufficient capacity or resources to provide the financial services required by its licence. It is reported that Jels has not been able to appoint a new head since the death of the previous head, and Jels' only authorized company representative is also insolvent.

In addition, Jels has not yet submitted its audited accounts for the financial year 2017-19. Under the relevant Companies Act, AFS licensee must submit their financial statements and auditor's reports annually, which the licensee must submit to demonstrate that they have the financial resources to provide the services covered by the licence and to conduct business lawfully. If a licensee fails to meet this obligation, ASIC can suspend or cancel their licence.

Cancel! ASIC cancelled the AFS licences of two financial company entities, including Jels

At the same time, ASIC revoked the AFS licence of Western Australian financial services provider Selectinvest Pty Ltd, which had held an AFS licence (No. 240774) since 8 December 2003.

ASIC revoked Selectinvest Pty Ltd's licence because Selectinvest had failed to maintain its external dispute resolution membership with the Australian Financial Complaints Authority (AFCA) and had not filed annual financial and audit reports since 2017.

Under the Companies Act, ASIC can suspend or cancel an AFS licence if the licensee fails to meet its obligations under s912A. This includes the obligation to hold membership in the dispute resolution system.

In summary, ASIC expects AFS licensees to do all that is necessary to meet their obligations under financial services law, comply with their licence conditions and ensure the efficient, honest and fair provision of the financial services covered by the licence. Of course, these licensees also have the right to appeal to the Administrative Appeals Tribunal (AAT) for a review of ASIC's decision.