On Friday, ifa exclusively reported that Dover director Terry McMaster has written to authorised representatives announcing that the dealer group will close its doors and cancel its licence, leaving hundreds of financial advisers urgently seeking new a new licensee.
The email claims that ASIC intervention is the primary reason behind the abrupt closure, but does not give any further information about the alleged “negotiation” with the corporate regulator.
It does, however, make clear that Dover will be enforcing its commercial contracts with advisers, despite what Mr McMaster acknowledges was “short notice” and “impersonal” method of communication.
Advisers in the Dover network will be compelled to inform their former licensee of their new AFSL immediately, notify any software or other relevant service providers, fill out a number of forms relating to consent and, notably, “pay all outstanding fees to Dover”.
“This will enable us to co-operate freely with your new AFSL,” the email explains, indicating that co-operation may be less forthcoming for advisers who have not settled their debts.
“Fee invoices for the month of June 2018 will be cancelled,” the email continues.
“If your fees to Dover are all fully paid, you will receive commission and platform fee payments from Dover on the usual dates.
“If there is currently any money owing to Dover, regardless of the due date on the relevant invoice, for simplicity commissions and similar amounts received by Dover will be used to repay or reduce your debt to us. Once that debt is fully paid, any additional commissions or platform fees received will be paid to you in the normal way.
“If you are aware that platform and commission income due to be received will not fully repay your debt, please pay the difference immediately. This will enable us to assist you to move to your new AFSL as quickly as possible.”
ifa understands that a number of licensees are in correspondence with Dover authorised representatives about onboarding.
ifa has sought clarification from ASIC and is awaiting response.
Mr McMaster confirmed the contents of the email are “sadly true” but declined a request for interview.
Do you know more about this? aleks.vickovich@momentummedia.com.au
ASIC and the RC needed a quick win so they drove the bus into Dover for a line in the Client Protection Policy that 2 years earlier they had approved. When the keeper of Independence (ASIC) creates the death of an Independent you soon learn that the top 5 control the industry and we are all doomed
financial planning has been on its last legs for a while now. everyone is getting out. it’s dead!
I concur with myself.
What is even worse for some of these planners who manage to secure a new Licensee in the time frame is that fund managers can take up to 6 months to transfer clients. For example one big name fund manager does not complete transfers between the 1st and 10th of each month and then it starts on its backlog. The cashflow knock on effect to small business livelihoods is huge. It’s time to rally around those good Dover businesses and provide much needed support.
Which fund manager does this?
Sad coincidence or evil genius? The licensing fee deferment recruited a lot of advisers. Terry may have know he was in trouble some time ago.
no it’s not a coincidence well executed plan more like it
Didn’t really think much of many of their AR’s from prior information, but by the same token this immediately enforced position by ASIC is nothing short of unconscionable.
Aleks- stop being a scumbag journalist – the payment of debt to Dover is in the ordinary course of the Dover agreement with advisers – 365 days interest free. There I no “hard line” ball.
McMaster has no shame – holding back commissions payments until debts are settled. It’s a big double whammy for those advisers who signed up on deferred fee arrangements. This is all about protecting McMasters $$ and industry is better off without him. He doesn’t give a flying f** about the clients he was supposed to be serving.
While the Royal Commission did irreplaceable damage to this brand, spare a thought for hard working advisers who will now have a very difficult time accessing a new AFSL. ASIC has already shown that it will actively review any licensee who takes on advisers in this situation so many AFSLs will be less than excited about taking on additional risk and in the same breath large aligned licensee are running scared.
At least Suncorp gave its ARs 6 months to find a new home. One month is unconscionable and could easily see good advisers stranded with no home, unable to service their clients and no cashflow.
i wouldn’t want to touch an ex dover adviser for the very same reason you mentioned
If dover are closed due to asic intervention and have to give up their licence yet cba and amp walks away with theirs. Then that is disgusting.
So who in all this is considering the impact on clients
Not ASIC it appears.
ASIC and the clients who can see another financial planner if they want to.
clients will find more suitable and more qualified advisers now