Dover has started bankruptcy proceedings against 10 former financial planners who have refused to pay judgement debts, according to Terry McMaster, who said “it’s not what Dover wants to do”.
“We have tried everything including concessional offers and repayment schedules but these few advisers will not respond. Most are still practising, and are with new AFSLs so they can pay. They are choosing to defy the court: commercially this is not that smart because obviously a financial planner cannot practice if bankrupt,” Mr McMaster told ifa.
Roughly $1 million in outstanding debts has yet to be recovered. Mr McMaster said that Dover has been “extremely patient”, with some of the debts now being four years old, but that “patience has expired”.
The deferred licence fee arrangements allowed new Dover advisers to push back a $20,000 fee by up to a year from their start date (the “Dover 360”). When Dover collapsed, the debts were called in, drawing the ire of some former ARs due to the lack of notice around the company’s difficulties with ASIC.
“Given the COVID-19 pandemic and Victorian lockdown and quarantine, this is clearly a strategy to make it as difficult as possible to respond, appear, consult with lawyers, and defend oneself, especially from interstate,” a former AR, who wishes to remain anonymous, told ifa in September.
ASIC could of stepped in and perhaps mediated the problem with McMaster and the DOVER AR’s ?
On thing come to my mind is remediation costs for AR’s. Nothing.
Dover was not a cheap licensing option as some put it….(so not sure where that belief comes from).
One could argue that many AFSL’s are in a mess currently and charging $40K to $50K is a rip off,
considering a lot AFSL’s have been caught out with here socks around the ankles in the current state of play.
The industry is in a mess – an absolute shemozzle. Dover was just the start.
Caught out with socks around their ankles? I’m guessing you must be a millenial who believes that socks should only ever be the shoeliner type, worn entirely out of sight so that ankles are bare?
Sorry but the AR must have been more gullible than I gave them credit. You mean Dover wasn’t a cheap Licensing option and they ended up in that mess! Someone, probably Terry, did a good conn job on getting AR to join and not follow through with the services they were promised, expected and not delivered on. I meet with Dover when I was canvassing the Independent AFSL market back in 2002! One meeting was enough to see through him.
I’m struggling to understand how $20K x 10 advisers = $1M in outstanding debts?
Could be interest he is charging?
What would you charge the AR to represent them at the RC? Couldn’t he have thrown the sickie before the hearing not during it??
Narrow minded comments from people that do not know or understand what happened with the RC and Dover , very sad to read these comments. If a service has been provided then it should be paid for, it helped many ASR’s with cashflow, but also many AR’s paid the fee when we departed to another dealer group. So why should those that dont wish to pay get away with not having to pay ?
I paid my fees so I could leave Dover quickly and ended up in a much better spot than Dover. Besides this, I feel that Dover breached their contracts will all advisors. From what I hear they knew something much longer than any of us knew about. Looking back, there are so many “signs” that things were not OK. I feel very taken advantage of. Anyone know if we can get compensation?
Maurice blackburn might know
Couldn’t happened to a nicer bunch of blokes! AR’s looking for a cheap Licensing option, finally get what they pay for!
You must be a joy to be around.
If you lie down with dogs; you get up with flees!
Sorry Anon but call me strange if I don’t tolerate whingers or conn men. Two liars, telling lies to each other and both looking for sympathy. Sorry but he’s doing them a favor to make them honor their agreements. They’ll feel better when they settle their debts.
Terry refuses to acknowledge that he let the industry and his advisers down in a big way, no monies should be due or paid to Terry at all or his de-funked former dealer group as he breached his contract with his advisers by accepting an enforceable undertaking.
Clause 3 of the AR agreements, states “Dover will do all things reasonably within its power to maintain the Financial Services Licence”
Pretty low to go and presumably bypass other forms of enforcement and go straight to forced bankruptcy.
But if your reputation is already ruined, why care what people think of you, hey Terry. Spread the hurt around and ruin some other peoples lives.
It’s ‘defunct’ meaning no longer existing or functioning rather than “de-funked”.
As to the licensee fees, the Advisers are liable. Pay up when the judgement stage has been reached or you are seriously done.
Advisers should understand no such thing as a free ride and pay up
those not in the position that up turned their world upside down should keep off the keyboard
Doesnt change the fact that a debt is owed and some are looking for excuses not to pay.
Grab a gurney like Terry did at the RC, give a thumbs up while on it and you’ll be fine guys 🙂
So you have a contract with a builder, he builds the house but due to his negligence leaves you without a roof, would you be happy to pay ??
You make sure that the Builder has Professional Indemnity insurance before you sign his contract. You then make a claim against the Builder who passes it on to his insurer to settle. Sorry, what’s the problem?