Justice O’Bryan of the Federal Court of Australia, Victorian registry, ordered Dover Financial Advisers to pay a pecuniary penalty to the Commonwealth of $1.2 million in “respects of its contravention of section 12DB of the ASIC Act 2001”. Terry McMaster – the second defendant – will also pay a pecuniary penalty to the Commonwealth of $240,000 “in respect of his knowing concern in the first defendant’s contraventions”.
The defendants have also been ordered to pay the plaintiffs costs.
More to come.
Dovers invite to the Royal Commission was smelly to start with. Then ASIC got the fangs into him.
There should be a royal commission into the disgusting treatment of advisers by ASIC and licensees. Amp and Dover have cost peoples livelihoods and lives.
AMP yes
Dover is a bit different. Their only issue was their Personal Protection Policy, no clients were harmed, and ASIC was the one that wound them up immediately. Not sure Terry/Dover can be blamed for this.
In his decision, the judge acknowledged it is “unlikely a consumer suffered a loss as a result of the CPP”, “that Dover did not derive a gain”, that Dover was “not aware it breached the law” and that “Dover cooperated with ASIC throughout”. How the hell do ASIC justify shutting down Dover then?????
Time to do some explaining ASIC!! (Actually, they probably can’t explain, the top brass have all resigned – I wonder why).
Well, each of Shift Shipton and Dan Crennan were the same: no idea they were taking money they were not entitled to and obviously cooperated fully with ASIC every step along the way….
The Federal Court specifically found no clients were harmed, Dover did not profit, Dover did not know it breached the law and that Dover cooperated with ASIC.
$1.440m in fines.
Imagine what ASIC will now do to the institutional AFSLs who did harm clients, did profit, did know they breached the law and did not cooperate with ASIC. Just joking: ASIC will just do what its told to do, as it did here.
Interesting to see how much ASIC is looking for fines with the latest case against an Industry Super Fund – but I would have good money on less than this.
And to think Australia calls itself a first world country.
What do you mean what will ASIC do to the institutional AFSLs who did harm clients?
The senior executive of ASIC will go and work for them.
what more can ASIC do to instos? They’ve already shelled out billions in client refunds and incurred hundreds of millions in remediation program costs. The same attention has not been given to smaller entities (thank goodness).
Whilst instos have their own significant sins to atone for, advisers are hardly without blame in all of this. Many earned a lot of money and built successful businesses over the years, off the back of institutional support. They didn’t complain too hard about it at the time.
yep. and that’s why the licensing arrangement is ultimately perfect for the incompetent or unscrupulous adviser (most arent though). Take the money and run and there is next to know recourse. That’s a component of why the system continues to be broken. I remember in my DFP, the lecturer who was an adviser said, my business doesnt have any assets, just a few office chairs. So if i get sued, there is nothing to get.
Gob-smacked! Despite all the negative publicity, they are yet to find anyone who has suffered a loss. ASIC knew there were issues two years before they told Dover… What an absolute crock!
ASIC’s culture and the corporations law need a complete revamp. Very concerning that a government regulator can behave in this manner to destroy lives.
Yes, I was thinking the same thing. Starting to look like China and/or Russia. In the meantime, Narev and his ilk can be appointed CEO’s of listed corporations. Vile.
how good!! unlucky
Dover’s cost to clients = $0 and they get banned. The big licensees cost to clients = $BILLIONS and they get spanked with a wet lettuce. Things that make you go Mmmmmm.
Aside from the client protection clauses, can anyone tell me what they did which would really deserve what appears to be a life-destroying penalty? Did they rip off clients or any fraudulent activity?
When ASIC bans a fraudster for stealing from mums & dads, aside from a 3 – 5 yr jail time, I never see them hit with such huge financial penalties.
When the HSU union boss stole over $20mill, he never had to repay a single dollar and only got 3.5yrs in a country club jail.
Does anyone else think there is more behind the scenes than we are aware of, like some form of personal vendetta between ASIC personalities and McMaster?
You have hit the proverbial nail on its head.
And when the top two people in charge of ASIC stole taxpayers’ money to pay for their own personal benefits, they pay it back and move on with no penalties, no ban from the industry, no jail time, no nothing.
possibly. ASIC do not like being pushed back against, though, i also wouldnt be surprised if there is more to this. How can they not be transparent about it?