Shock Move by ASIC! AFS Licences Revoked!

In an unexpected and bold action, the Australian Securities and Investments Commission (ASIC) has officially cancelled the Australian financial services (AFS) licences of two financial firms: Downunder Insurance Services Ltd, effective June 24, 2025, and Ipraxis Pty Ltd, effective June 25, 2025.

Why Were the Licences Cancelled?

The cancellations come as a result of these companies failing to clear their industry funding levies, which have been overdue for over a year. As stipulated in section 915B(3)(e) of the Corporations Act 2001, ASIC has the authority to take such measures if a financial service provider has not paid its dues for more than twelve months.

A Closer Look at Downunder Insurance and Ipraxis

Downunder Insurance, proud holder of AFS Licence number 281478 since February 22, 2005, was licensed to provide financial advice on general insurance products to retail clients. Meanwhile, Ipraxis held AFS licence number 329337 since October 21, 2008, with the ability to deal in a wide range of services including deposit products, life insurance, and managed investment schemes.

A Right to Challenge: What’s Next?

In the wake of these drastic measures, both Downunder Insurance and Ipraxis are entitled to appeal ASIC’s decision at the Administrative Review Tribunal. The stakes are high, and the outcome remains uncertain as these companies seek to defend their positions.

What This Means for the Financial Landscape