A recent court decision refusing Australian Financial Services (AFS) Group advisers access to a liquidated brokerage accounts, highlights the importance for advisers to be reimbursed immediately, according to non-institutional licensee, Synchron.
Earlier, the Federal Court of Australia denied access by former Australian Financial Services (AFS) Group advisers, who provided services to the company, to the money in a brokerage account of the group.
“The non-payment of the AFS trust holdings is really unfortunate for the advisers who earned the money…. It’s not the first time this kind of thing has happened. A very similar thing occurred when another licensee, Silvalake Financial Services Group, was placed into liquidation almost 10 years ago,” John Prossor, Synchron director, said.
AFS Group was placed into voluntary liquidation last May after a creditors' meeting and BDO Australia administrators Rachel Burdett-Baker and Luke Targett were appointed as liquidators.
Synchron, argue to lessen the impacts of decisions like this client fees and commissions should be paid to advisors as soon as it is earned.
“Synchron believes that money earned by an adviser belongs to the adviser and should therefore be paid without delay…For this reason Synchron has always paid advisers daily. We don’t hold advisers’ money in a trust account or any other account, for any longer than we can help it,” Mr Prossor stated.
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