The Australian Securities and Investments Commission (ASIC) has withdrawn the Australian Financial Services (AFS) licence of NextGen Financial Group Pty Ltd (NextGen Financial Group), with the action taking effect on February 23, 2024.
The move followed a directive from the Federal Court of Australia, which, on November 17, 2023, mandated the liquidation of NextGen Financial Group on grounds of insolvency.
According to the provisions of the Corporations Act, ASIC holds the authority to either suspend or completely revoke an AFS licence without necessitating a hearing, especially in instances where the licensee is subject to administration or liquidation processes.
Despite the revocation of its licence, NextGen Financial Group is granted a conditional allowance to carry on providing financial services to pre-existing clients up until April 16, 2024. This is strictly limited to activities related to the finalisation of current client arrangements.
Furthermore, NextGen Financial Group retains the opportunity to contest ASIC’s verdict by filing for a review with the Administrative Appeals Tribunal (AAT).
Originating under the names FinancialLink Group Pty Ltd and SJP Insurance Services Pty Ltd, NextGen Financial Group had been in possession of AFS licence number 240938 since February 1, 2004. The role of liquidator for NextGen Financial Group was assigned to Joseph Loebenstein following the court’s insolvency ruling in November.
In other news from ASIC, Chair Joe Longo recently expressed concerns about the AI regulations in Australia.
