Speaking to ifa in the wake of last Friday’s surprise closure of Dover Financial, AFA chief executive Phil Kewin said the immediacy with which the business ended came as a surprise, despite knowledge of ASIC’s ongoing investigation into the dealer group.
Mr Kewin said the AFA had contacted affected members and was taking steps to introduce them to new licensees, but added that former Dover advisers may face difficulty joining other dealer group’s due to Dover’s recent appearance before the royal commission and the regulator’s concerns over its compliance.
“This isn’t ideal for anyone, but it’s important to remember this isn’t about the advisers or the advice being given, this is about ASIC and Dover not being able to work something out,” he said.
“Whether they’re good advisers or not, they’re going to have some difficulty with some licensees not wanting to deal with advisers from certain dealer groups.
“We need to remember to assess these advisers as individuals, for the people they are and for the work they do.”
Mr Kewin added that the sudden shuttering of Dover was “not a good look for the industry” and will have implications for the financial advice industry’s reputation.
“There will be flow-on effects,” he said.
“There’s no winners out of this, it’s no good for clients, for advisers, for dealer groups, or for the industry’s reputation.”
Fellow adviser association FPA declined to comment on the shut-down of Dover.
ASIC playing eye spy……” I spy with my little eye, something beginning with “S”
“Fellow adviser association FPA declined to comment on the shut-down of Dover.”
Talk about double standards. Seems like the FPA only comment when a Bank is involved and it’s always in support of their puppet masters. I’m sure those FPA members with Dover are getting value for their fees now….not.
I just don’t know why Terry didn’t do what the FPA and Banks collude to do together. Just blame individual planners, cry for higher education standards and make it compulsory for his AR’s to join either the FPA or the AFA. Then he should have called the FPA and instruct them to issue a letter of support. Worked for CBA in 2016. All would be sweet….except we’d have FASEA. So all up the FPA would be a winner, ASIC a winner, Dover a winner. every other adviser back to school
terry upset a lot of people
OMG this publication is surely like new idea now?! this is the reason why this industry is doomed. everyone has been for too long trying to blame someone. the adviser, the banks aligned non aligned etc everyone has caused this. Syncron will now have there time and that is not good either.
Synchron have been writing to Dover advisers for weeks
The bigger issue for ASIC is many thousands of clients will still be paying advice fees and other fees that are locked in to the arrangement without getting advice. This make the AMP Breach look like a walk in the park!
Was thinking that, surely they need to be turned off straight away too going by AMP?
Really based on this, AMP and the banks should have their AFSL revoked if we are not playing favorites or that ‘too big to fail’ tripe.
Ongoing advice arrangements are still able to be provided actually
How? They aren’t able to provide new advice. How is it an ongoing advice arrangement if no new advice can be provided as required? Unless its just practicing fees for no service…?
Yes. What the hell does CBA have to do to have there AFSL suspended for an hour, a day, or even just pay a token fine? The Banks sales staff are so polished that for a Bank adviser the endless river of referrals doesn’t miss a beat. Contrast this to myself where I just found out my PI Cover is rising due to the Royal Commission by 20%. As an “independent” non aligned adviser, the phone goes dead during the RC because I’m tarnished with the same brush, PI cover goes up and the Banks don’t skip a beat… frustrating. Very contrasting approach here with the treatment of Dover…something very smelly going on behind closed doors and the RC needs to get ASIC on the stand again.
Annoymous, I’m not sure if you read the responses to your posts, but here we go again. ASIC doesn’t approve any SoA template. They can’t. They only provide guidance. And I’m not sure how the management at Synchron would feel about being called bulletproof either. A lot of licensees in the past thought they were bulletproof until ASIC took action for deficiencies. Further to this, having a strong relationship with ASIC doesn’t prevent them from taking action either, it just means that there will generally be a better outcome for all involved. Finally, Dover was the fastest growing Licensee in Australia prior to this event, and as someone who works with a Licensee, I wouldn’t want that tag any longer, because it comes with a target. On another note, you keep espousing the virtues of a four page risk SoA. Leaving ASIC to the side for a moment, but has it been tested with FOS?
Anyone given a thought as to what action product providers will take in relation to ongoing service fees deducted from clients’ portfolios?
As of right now they cant legally be paid to any of the nominated advisers, so they should be turned off.
Payments can never be made to an Adviser, all payments go to the AFSL.
No sh!t, jape. You know what I meant…
Wasn’t having a go. It just sounds like product providers might have to retain or cancel a lot of payments from July until a Dover person gets set up again – which will be an epic problem.
far out, so advisers income just gets switched off ? there has to be a class action against dover surely!
Good outcome if Dover planners join Sychron. Most ASIC bullet proof licensee in the country. 4 page Risk Insurance Only SOA, ASIC approved. Don has a very strong relationship with ASIC and Dover planners should joining the fastest growing licensee in Australia
You must really want to make Sychron ASIC’s next target. Plenty of Dover advisers were making very similar statements prior to McMasters appearance at the Royal Commission. Be careful what you wish for, ASIC hates all advisers, regardless of how they are licensed.
Didn’t realise the comedy festival was on at the moment?
Synchron isn’t taking on Dover advisers
[size=10px]— Please note that this scripted response is presented by paid actors on behalf Sychron —[/size]