Former Custom Wealth Solutions (CWS) authorised reps have already resumed receiving commissions, following what the receivers have called an “uninterrupted” transition to their new licence.
Yesterday, ifa revealed the contents of a letter from CWS receiver Geoff Davis to former authorised representatives which confirmed purchase of the CWS Dealer Services business by Brisbane-based licensee SMSF Partners – which has rebranded as MyPlanner Australia in recent weeks.
In a subsequent email to new advisers, dated yesterday and seen by ifa, MyPlanner Australia explained that commissions owed to CWS advisers have already begun to be distributed.
“We confirm that commissions for the week ending 22 June 2014 have been paid today and commissions for the week ending 29 June 2014 will be paid tomorrow,” the email stated.
“All commission paid into the CWS Dealer Services account will continue to be paid weekly until all outstanding commissions have been paid and resolved.”
One of the new MyPlanner recruits – speaking on condition of anonymity – confirmed the commissions have been forthcoming from his new licensee.
“I’ve actually been paid,” he said, adding that it was the “first time in a long while”.
The email also explains that the former CWS advisers have moved across to MyPlanner’s PI insurance policy, with “runoff cover” having been negotiated with insurer Axis for “all advice provided by advisers while still an authorised rep under the CWS Dealer Service licence”.
The letter from Mr Davis said the movement of CWS advisers to MyPlanner has been unusually smooth, thanks to its own efforts as well as the co-operation of ASIC and MyPlanner.
“We know that this time has been difficult for the company’s authorised representatives,” he said. “However, we believe that we have been able to minimise disruption to you and enable you to continue to provide your ongoing client services largely uninterrupted.
CWS went into external receivershipin June, reportedly following a personal dispute between its directors.
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