Several creditors of a former AMP-aligned advice firm, which went into liquidation six months ago, are not likely to see any compensation despite the company selling its book of business recently.
Victoria-based advice firm QLI was placed into liquidation in August 2015 and its client book was sold to a third party in October 2015, according to the liquidator PPB Advisory.
A PPB spokesperson told ifa that QLI owes $1.3 million to 10 creditors, with AMP claiming the most at $1.2 million.
However, at least four of the unsecured creditors are not likely to receive their share "due to insufficient funds", the spokesperson said.
The move to wind up QLI came around the time AMP terminated its relationship with the firm's director, Trevor Cutler, due to deficiencies in record-keeping. Mr Cutler was licensed by now-defunct AMP dealer group Genesys until June 2015, the ASIC adviser register shows.
"The termination of the license represented an event of a default under the loan agreement with [AMP], which subsequently took steps to enforce its security after a demand for repayment was not met," the spokesperson said.
Liquidators also discovered a deficiency in the company's books and records during investigations, which is subject to being reported to ASIC.
"We will submit our findings to ASIC under [section] 533 of the Corporations Act in due course," the spokesperson said.
An AMP spokesperson said: "AMP takes its responsibilities around monitoring and supervision very seriously, and in instances where advisers don't meet those standards we will take appropriate action."
Mr Cutler is now an authorised representative of HNW Planning.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 23 Oct 2018Platform provider remains ahead of the packBy Eliot Hastie
- 23 Oct 2018Wentworth loss opens Coalition to FASEA changesBy James Mitchell
- 22 Oct 2018ASIC reveals findings of CBA enforceable undertakingBy Adrian Flores
- 22 Oct 2018ARCO fund added to BT Panorama platformBy Adrian Flores
- 22 Oct 2018NAB well-placed to sell MLC wealth businessBy James Mitchell
- 22 Oct 2018CBA announces appointment of CFOBy Reporter
- view all