Australian Securities and Investments Commission Cancels NextGen Financial Group's Licence

The Australian Securities and Investments Commission (ASIC) yesterday (27 February) announced the cancellation of NextGen Financial Group Pty Ltd's (NextGen Financial Group) Australian Financial Services (AFS) licence, effective 23 February 2024.

This follows an order by the Federal Court of Australia for NextGen Financial Group to be wound up in insolvency on 17 November 2023. According to the Australian Corporations Act, ASIC has the power to suspend or cancel a licensee's AFS licence without a hearing if the licensee is being wound up.

ASIC said that until 16 April 2024, NextGen Financial Group may continue to provide financial services to some of its clients. This is conditional on the relevant clients have been customers of the business prior to the effective time of the licence cancellation; and the termination of financial services having an impact on their existing arrangements.

Meanwhile, the regulator said NextGen Financial Group can apply to the Administrative Appeals Tribunal (AAT) for a review of ASIC's decision.

NextGen Financial Group, formerly known as FinancialLink Group Pty Ltd and SJP Insurance Services Pty Ltd, has held an Australian financial services licence since 1 February 2004.