ASIC’s Crackdown on Broker Leads to Director Ban

ASIC’s crackdown on broker exposed financial misconduct, leading to the director’s eight-year ban from the industry. Less than a year after revoking the operational licence of JB Markets, which provided forex and contracts for differences (CFDs) products, among other services, the Australian regulator has now imposed an eight-year ban on its director, Peter Aardoom, preventing him from associating with any financial services firm.

ASIC’s Crackdown on Broker Hits JB Markets

Aardoom, based in Brisbane, served as a director at JB Markets since 2016 and held the designation of key person under the company’s now-cancelled Australian Financial Services (AFS) licence. The new ban prohibits him from overseeing any financial services entity or performing any role within the sector for the next eight years.

The prohibition follows an investigation by the Australian Securities and Investments Commission (ASIC), which found that Aardoom, as the sole director, had engaged in a deceptive loan arrangement between JB Markets and another entity. While the other company transferred AU$540,000 in cash to JB Markets as a loan in 2021, the transaction was actually an equity investment. Additionally, Aardoom failed to issue shares to the unnamed company within the required timeframe.

ASIC further noted that misrepresenting an equity investment as a loan allowed Aardoom to gain an advantage in obtaining approval for JB Markets’ restructuring plan. He even adjusted the reported loan amount in the plan to ensure the company’s total liabilities remained below the $1 million threshold required for a small business restructure.

Now, the Australian regulator asserts that Aardoom “is not a fit and proper person to participate in the financial services industry and is likely to contravene a financial services law.”

CFDs Firm Faces Penalties

JB Markets offered a range of financial products and services, including margin forex and CFDs trading, share dealing, agricultural product trading, and managed fund operations.

ASIC initially took action against JB Markets in November 2023, suspending the company’s licence for six months due to its failure to “comply with the financial requirements of its AFS licence” and “have adequate resources to provide the financial services covered by the licence.” This temporary suspension led to a full licence cancellation in April last year.

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