ASIC cancel's NextGen Financial Group's AFS licence

The financial advisory group can continue its operations only until April 16

ASIC cancel's NextGen Financial Group's AFS licence


By Mina Martin

ASIC has officially revoked the Australian financial services (AFS) licence of NextGen Financial Group, effective Feb. 23, following a Federal Court order to wind up the company due to insolvency.

The decision to cancel the licence comes after the Federal Court of Australia’s directive on Nov. 17, instructing that NextGen Financial Group be liquidated.

NextGen Financial Group, previously known as FinancialLink Group and SJP Insurance Services, has been a holder of AFS licence number 240938 since Feb. 1, 2004. The cancellation of its licence marks the end of its operations in Australia’s financial services industry, ASIC said in a media release.

Despite the cancellation, there is a transitional provision allowing NextGen Financial Group to continue providing financial services to existing clients until April 16, strictly for the purpose of terminating current arrangements. This measure ensures that clients are not abruptly left without service due to the licence cancellation.

NextGen Financial Group retains the right to challenge ASIC’s decision by applying for a review at the Administrative Appeals Tribunal, offering a pathway for the company to contest the licence revocation should it choose to do so.

The appointment of Joseph Loebenstein as the liquidator on Nov. 17 marked the beginning of the winding-up process.

For more news on ASIC’s regulatory actions, click here and here.

* NextGen Financial Group is unrelated to NextGen.Net Pty Ltd

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