According to ASIC’s notice, the ATO filed an application to wind up Victoria-based Blazer Wealth Management on 5 January. The Federal Court will hear the order in Melbourne on 5 February, the notice said.
Blazer’s director, Tony Blazevski, has been licensed by AMP Financial Planning since 2004, ASIC’s adviser register shows.
Speaking to ifa, an AMP spokesperson said the wind-up order was the result of an administrative misstep.
“Blazer Wealth Management is working with the ATO to resolve a business administrative error, unrelated to client service,” the spokesperson said.
“The firm continues to operate as normal.”
ifa reported yesterday that a former Genesys-licensed firm, which went into liquidation six months ago, may not be able to compensate all of its creditors.
In July, former AMP-aligned Murray River Financial Services went into liquidation. ASIC’s register shows the firm’s director, Colin Smith, is no longer licensed by AMP Financial Planning.
We will never know the full reasons why these businesses failed. And given privacy laws neither should we. However, anyone who has been in the industry for any length of time knows that there are many businesses across many licensees that have been, and continue to be, in precarious financial and poor business capability positions.
And this is not limited to small businesses but also some very large practices. Unfortunately the larger the practice, which means the larger the income to the licensee, the less inclined the licensee is to take surgical action against the practice. Now whilst many if not most of the practices in trouble can restructure and trade their way out their problems one must ask whether their financial position affects the independence and quality of advice to their clients.
The financial position of practices and advisers should come under systematic review by licensees ( an exceptions list should be maintained at regulator level ) at least on a a bi-annual basis. I have more than once seen financially unstable and poor business standard practices and advisers recruited from one licensee to another and this must stop.
The financial position and business acumen and capability of advisers and practices must be treated equally with education and ethics. If that means we lose some advisers so be it.