It is understood that Beacon advisers are scared to leave the group after witnessing the poor treatment of those who have already left.
Sources close to the situation told ifa that after learning one Sydney-based adviser has already gone into liquidation owing $450,000 to the Linchpin IIOF fund, Beacon advisers have “serious fears” that they will be unable to recoup client monies that were invested in the fund. The IIOF fund is currently at the centre of an ASIC investigation.
Beacon advisers told ifa that their primary focus is to get their clients’ money back and move to a new dealer group.
But any hope of doing so is fading fast after advisers claim that any of their peers who have left Beacon experienced “poor treatment”.
“Exiting advisers have been victims of false allegations, ASIC complaints, FOS complaints and general slander against their good names,” said one source.
“The Beacon group hold the advisers and their clients to ransom while they scramble to find a purchaser to buy the AFSL so they can repay the loans. They will only sell if they make a profit.”
Despite being under investigation by the corporate regulator, Beacon will go ahead with its conference in Adelaide and the Barossa Valley between 7 October and 12 October.
Advisers received an email reminder to register for the conference, which begins on 8 October at 8am.
“The 2018 Conference is on and commences in a little under eight weeks. Still time to register and get yourself organised,” it reads.
“We have secured one of Australia’s leading and most successful corporate entertainers and MCs to host the conference and keep us on track.
“No trip to Adelaide is complete without visiting the South Australian wineries. McLaren Vale and Barossa food and wine at key icons of South Australia and we will be visiting both.”
More to come.
Whatever anyone thinks of all of this it is absolutely stunning that the big banks and AMP get away with much worse and they never get held to account. Dover basically got wound up by ASIC and now they are being pursued for a badly composed “client protection” policy. Compare this to the allegations of criminal misconduct and lying to the regulator and it starts to look like the big licensees are being treated as too big to fail.
OH dear. If olny ASIC attacked the big 4 and AMP with the same viour.
RIP financial planning.
Thank the FPA for destroying your business.
Keep flogging your courses FPA.
Wife left you? Dog died? Footy team didn’t make the finals? Blame the FPA!
Exactly! You only left out “Car broke down?” as a thing for which the FPA could be blamed.
Agree you can’t really blame the FPA. After all, the FPA look after their Royal Commission members/buddies like AMP and the banks. Unlike AMP and CBA Financial Planning, Beacon most likely didn’t pay the FPA kickbacks. If they did, Beacon could simply put out a press release and say “it’s not us it’s planners and we believe the solution is degrees and membership of the FPA”. The FPA could follow this up with a press release of support. Beacon would get off, FPA would have more members and we’d have FASEA . All simple really. If only they paid the FPA money.
What are you lot on, because whatever it is must be good. Perhaps go back to your dealer and ask for more
Dear Anonymous. You seem to have a problem with the FPA. Perhaps you should resign. Good idea not to post your name.
Looks like IFA have once again put “sales” of their articles ahead facts. I understand Beacon is a “clean” business and the only investigation is into Beacon’s owner – Linchpin. Whilst I have no interest in this group, I do have some knowledge of the facts and it really p….s me off to read stuff like this .
No true, Advisers have been told they are complicit in the promotion of what is best a ponzi scheme by design
It’s not a Ponzi. IMHO it’s actually a pretty safe and solid concept IF and I repeat IF they had registered it correctly and IF the disclosure documents were up to scratch. The adviser fees were modest. I never recommended the fund.
You obviously don’t have an idea and you have every interest. Time will tell
Are you serious, I am assuming you are one of the advisers who no doubt got paid hefty fees to promote this rubbish fund
HOw is the fund a Ponzi? It is a dodgy fund but it doesnt look like a Ponzi to me.
another reason why advisers need to be self licensed
Hopefully the conference is cancelled , i would be asking to look at the sponsorship list to see why insurers and fund managers are funding this.
Looks like TAL and IOOF have chosen to support this dealer group !
perhaps there will be a robust breakout discussion on what constitutes a decision to place clients money into the “Investment Universe” a sub set of the lynchpin mouth watering “opportunities”Mr Daly himself is a recipiant of $70,000 of this honey pot ..still has not repaid after 3 years …so sing and dance at your conference !
Will liven up South Australia for a week or so at least. Highlights one of the significant issues with this industry and it is unbelievable ASIC have let it get to this stage.
Hello ASIC anyone out there ? This is a great opportunity for the new ASIC chief to come and sit down with a cup of tea with some advisers from the group and share their concerns. IFA could even sponsor the meeting . I will shout the Coffee, scones with Jam and cream.
How has the RC missed this!
It is not uncommon in the industry, Count did a similar thing to adviser that wanted to leave and that was before the Royal Commission. The problem with these large dealer groups is the only and I mean only reason they exist is for profit. Now we all need to make a profit but when you do it at the detriment to others then these practices are questionable. Count refused to transfer clients to the new dealer group. so that they would retain the commissions and benefits that they were receiving and then provided no advice. This is not hearsay form the commission but factual information from my own personal experience. Clearly their actions are not in the clients best interests.
Yep. Same thing for me Steve. Count required positive consent from clients. Almost a handcuff to the dealer group. The question needs to be asked just how many Orphan clients does Count have, just because the client didn’t return a form saying the want to move with the new advice firm? Advisers wondering why Grandfathered commissions are being banned should look squarely at Dealer Groups. Advisers are wondering why the commission business they purchased at 2.5 times is now selling at 1 times.
Everyone knows that this is how Barry got rich and fat. Not economical for accountants to write to clients chasing trail rev of less than $100 pa, but when aggregated under the Count banner, all these ‘orphan’ clients represented a massive source of income.
there are a lot of fat people that are free riding on our efforts, we need to cut these fat lazy turds loose.
advisers need to be individually self licensed.
And how long have you been on the gravy train?
Gosh this conference sounds very much like the old AFSL liquidated principals weekend wonder if the MC is Anhno.Seriously why is ASIC not taking stronger action????
Except that the advisers pay for everything themselves.
The real question is “why did the advisers put client money into that fund to start with?”
Because they were mislead and lied to
Advisers need to do their own research misled and lied to – so if your were told just jump over the cliff it is only 2 metres would you not check to make sure?
An adviser must consider and fully understand the product they are recommending…try with your hand on your heart explaining the “Investment universe” Mr Daly has dragged Beacons reputation beyond the gutter.
It’s an internal product with a odd that says it will lend to certain criteria and relevant securities and promoted that way. The directors abused the facility with no disclosure.
The dealergroups are not without their own problems, it is all tied.
You are correct Daly has dragged beacon into the gutter but so have the faceless men, the other 3 directors.
A magnificent business destroyed