Speaking to ifa, Forte Asset Solutions managing director Steve Prendeville noted that Dover had more than 400 advisers, $4 billion in funds under management and over 10,000 clients before its demise.
He said the closure has had regrettable repercussions across the entire advice industry.
“Advisers within the group have not only had significant disruption to their businesses but also reputational damage,” Mr Prendeville said.
“The 400 or so advisers had precious little time to find an alternate licensee, compounded by alternative licensees being mindful of the ASIC microscope following all adviser movement, their inability to undertake appropriate DD’s in the time permitted, PI Insurers concerns, etc.
“Indeed, presently there are more than 100 advisers yet to find a new home.”
Mr Prendeville said his licensing solutions business dealt with many ex-Dover advisers seeking an alternative dealer in June.
However, he couldn’t represent as many as 40 ex-Dover businesses as they were below its and the industry’s minimum size requirements, recurring revenue of less than $100K but with five or more years of history, all grandfathered revenue, dealer-hopping history, past compliance history, among other factors.
Further, Mr Prendeville said that even those advisers who found a new licensee are having to reassess their choice due to recent developments with the new AFSL.
“All advisers, ex-Dover or otherwise, should now be hypersensitive to their dealer affiliation as their businesses are not only exposed to the lowest common denominator but also the top denominator (i.e. the licensee),” he said.
“You can be guilty by association irrespective of the quality of an adviser’s business/advice and could find yourself a refugee with closed borders.
“It is for these reasons and the reputational cost with the association to the banks and AMP that we are seeing the growing number of practices moving to small-sized dealer groups or self-licensing. The smaller-sized dealer group gives confidence that they have a voice and personal relationships with management and peers.”
[quote=Anonymous]we left Dover before the collapse as Terry McMaster was abusive, and quite frankly nonsensical. They made it outrageously hard to left, froze our revenue for 3 months, wouldn’t return emails or phone calls, we had threaten ASIC involvement before anything happened. Their ridiculous behaviour was very contrived and deliberate. I know of many advisers that had the same experience with them. Terry McMaster has no place in any professional organisation as he is a very calculating and malice driven narcissist!! I hope they jail him…….[/quote]
Sounds like you must’ve stepped outside of the lines and not listened to feedback….or perhaps you didn’t pay your fees. Bloody Sook!
The reality is that dealer groups that are not planner centric should not exist. Where the dealer group exists for any reason other than to benefit planners and clients we should be asking the question as to why. In the case of the big banks and AMP they have only existed to further advice their vertically integrated business model. When this has gone wrong the banks and ASiC have always blamed the planners. ASIC have had many chances to clean up the industry and yet time and time again they have focused on smaller players as they are easier to beat in court. Meanwhile, the massive amounts of damage being done by AMP and the big banks has been allowed to continue. Sadly, it looks like there have been no lessons from the Royal Commission as ASIC are now attacking Dover for their dodgy CP policy whilst AMP and the banks are paying refunds to clients and then moving on with business as usual.
nice sentiment but the reality couldn’t be far from the truth. to whom do you suggest that we should be raising the questions to about the validity and value proposition of a dealer group(s) ?
anyone listening to our issues? i don’t think so.
there is no one, no, not a single one.
the most important question (for our industry) that the RC has raised is to question the current structure
we’ll never be a profession until the current structure is dismantled.
Best
High Quals FP
we left Dover before the collapse as Terry McMaster was abusive, and quite frankly nonsensical. They made it outrageously hard to left, froze our revenue for 3 months, wouldn’t return emails or phone calls, we had threaten ASIC involvement before anything happened. Their ridiculous behaviour was very contrived and deliberate. I know of many advisers that had the same experience with them. Terry McMaster has no place in any professional organisation as he is a very calculating and malice driven narcissist!! I hope they jail him…….
but, this is the norm i.e. industry standard. it is like that when you try to leave any dealer group. you are lucky Terry only just froze your funds and did not try to embroil you in litigation or the like. he easily could have done so. no cost to him, he runs a law firm.
this is why the current licensing model needs to change. advisers need to be licensed through another entity even asic (as much as i hate to say it, their incompetence is beyond belief) is preferred than the current dealer group model
you are their best friend until you decide you want to move on then all hell breaks loose, you are mired in litigation for no fault of your own and they try and bankrupt you either by ruining you financially or by permanently damaging your reputation.
some profession this is. and the adviser has no recourse, zero, zilch nothing nada
sucks to be an adviser I know. friends trust me, 20+ years experience, highly qualified and you’ve never ever heard of me (and you won’t either). i write truckloads of business (so much that i cannot even cope with) and no one would recognize me (don’t want to either, happy with loads of cash instead)
that is how i would suggest you carry on in business, once you retire and all your bags of money are in entries beyond reach of anyone, then you should gas bag all about your experience while you enjoy fine french champagne in your NZD $8,000 per night suite at huka lodge.
until then, [b]be invisible[/b], except to your clients.
best
high quals fp (Shhhh, quiet,)
anyone with a profile or seem to be doing welll then asic comes knocking, specially if a nice easy target.
what is the alternative ? cough up $800k in legal fees ? its’ unwinnable. might as well just sign the EU and leave the industry with your house and family intact.
Love it! So true too. A few advisers that I know are quietly slipping over into a self licensed model where the depth of scum and villainy is somewhat less intolerable.
Motioned seconded, I’m much the same. I’ll never put my name forward for some wankfest practice or advice or boutique dealer group of the year award. I prefer to tell my clients and referral partners how good we are at what we do, not other advisers, it’s a much more profitable use of my time!
Sounds like you were let go for poor compliance to me. I suggest you put your name on your posts so Dover can respond with the facts.
he was lucky terry did not sue him or embroil him in litigation. go home and count your lucky stars. you walked away unscathed.
you don’t want to see the wrong side of mcmaster. he will attack. glad his target is ASIC this time, it will be a joy to watch these two fight it out
mcmaster will win in the end he never loses, he owns a law firm you want him onside
he’s like the fp industry’s batman, he’ll take on anybody and win he’s unstoppable
As long as it doesnt get a bit rough. Then poor old Terry will begin to wheeze and cough. Next thing you know he’ll be off in the back of an ambulance.
‘Sounds like you were let go for poor compliance to me.’
Based on what?
We need to be very careful about accepting Steve Prenderville’s advice on anything.
http://www.financialobserver.com.au/articles/prendeville-sold-house-to-repay-broking-debt
Then again, Steve definitely has experience in shutting down businesses.
“the industry’s minimum size requirements, recurring revenue of less than $100K but with five or more years of history”
Where has that come from?
Anyone with over 5 years experience and less than $100k revenue probably shouldn’t be in the business
Those who do not have intimate knowledge of this situation should hold back strident instant opinions until the fat lady has funished singing.
“funished” singing? You must be referring to Dame Kiri Te Kanawa.
funger fick ip 😀 u i
yes, ironically, the very advisers who terry gave a lifeline to, i.e. those great financial advisers who couldn’t afford to pay $20k pa (probably less) are the ones suing him
poor guy, feel sorry for him. all he had to do is to stay under the radar and he would have sailed into the sunset with his money bags, but no, had to tell all and sundry
don’t you know terry what happens with tall poppies in this country ?
All advisers should be asking questions of the Regulator and their Professional Associations as to why the banks can do so much harm to the advice industry and get away with it and yet here we have Dover getting closed down. Yes they stuffed up…but closure, is ridiculous. It’s very obvious that Dover has not PAID the right people at the right time. As a single adviser with 20 years of experience who started a business in 2009 I have faced so much over regulation regulation, so much more red tape and getting new clients has always been made challenging because every way I turned the banks were blaming financial planners at every step.
I am very disillusioned with the FPA due to the payments they’ve received from the banks. I’ve got FASEA not because the Banks recommended it but the FPA stood by and issued a letter of support of the banks in return for funding. I have since torn up my crappy CFP and FPA membership, it’s the only solution I can see to return confidence to the advice sector and prevent further over regulation.
Congratulations! Welcome to the club, that makes two of us.
anybody else want to join us and cancel their FPA membership.
so far, i have counted 2. me and the gentleman/woman above.
I’m the third. Cancelled earlier this year.
bravo, i salute you sir/madam.
3 and counting, anyone else want to stop paying for the farce that is FPA / AFA
we are in the position we are,- over regulated to death- precisely because of their (mis)representation
Myself and the 3 advisers in my practice all feel the same. We have not renewed our FPA memberships and are disgusted with ASIC and what they have allowed the banks to rip off AUSTRALIA!
I’m assuming you folks who regard your CFP membership as crappy obtained it via grandfathering. In that case it is you who makes it crappy, and drags its standing down for the people who actually studied for it. When you resign from the FPA, it’s a win win situation for everyone. Please take your grandfathered colleagues with you.
let’s chat after fasea’s verdict
The FPA can’t even get certified CFPs to stand in the new FASEA world (not yet anyway). Despite all their study, time and money spent etc. That right there is half the problem.
Abso friggin lutely. The 20% of all CFP who are legacies (DFP 1-8 only) devalues the rest of us.
I studied for it and like those above, do not like the way the FPA has behaved. I do however need to be a member of something (required from my Licencee) so I’m still there – but only just.
Not sure why you make assumptions.
that’s because the only people capable of studying a post graduate course are the “real” CFP’s like Jape, no one else can do any study, nothing is harder than the non-aqf rated CFP, that is the gold standard benchmark for any other qualifications to be measured against, and of course all other qualifications fall short by a mile.
just joshing
It’s because you’re part of the grandfathered bunch and hence do not deserve the CFP because you never worked for it.
I have assisted a number of clients in recent months of ex Dover advisers. I have not come across one situation where good well documented advice was given.
One there is a dispute where a client claims they were moved without their consent to a fund linked to the adviser that has since lost substantial value where the previous fund they were in would have more than doubled in that time.
If it looks like a duck , quacks like a duck ……….
a lot of these advisers also couldn’t afford to pay $20k to terry. now they are suing terry.
I call BS on this. As an ex Dover adviser, there was a lot of emphasis on well documented advice that was helpful to the client.
Call whatever you like mate. Can’t review a document if it doesn’t exist can ya now
Perhaps they’re only coming to you because they’re desperate? All the quality advisers have found a new home. The few dregs come knocking on your door 😉
The new licensing model is lean on expenses, and caps adviser numbers at 50 to 55. This provides good relationships and a nimble operation.
Dover should be held responsible for the impact on these advisers !! Does anyone know if there is a class action against them??
What about ASIC’s role inall of this? They were telling McMaster to close down the AFSL & if he didnt act voluntarily they would force the closure
Hang on, you signed a contract, they gave you notice under the terms of that contract didn’t they? Most dealer groups are entitled to give you anywhere from Zip to 30 days notice.