Yesterday, ifa reported that CBA subsidiaries CommSec Adviser Services and Colonial First State have taken steps to immediately restrict access to Dover authorised representatives following the shock closure of the licensee, according to leaked emails seen by ifa.
Numerous Dover advisers who recommend CBA products, speaking on condition of anonymity, told ifa of their displeasure and even “disgust” at the bank’s approach, calling on their relevant business development managers to push executives to reconsider.
A number of CBA competitors have now come forward to confirm that they will not be making pre-emptive decisions ahead of the licence cancellation but will see Dover and its clients through to the scheduled cancellation date.
Netwealth joint managing director Matt Heine told ifa that his platform will “continue to pay adviser fees to the licensee for so long as the adviser and the licensee are licensed”.
“It currently appears that the licence of Dover will be cancelled on 6 July so it is Netwealth’s intention to pay fees that are due to that date,” Mr Heine said.
However, he also made clear that the adviser moved to a new licensee after 6 July, or the client moved to a new adviser – as ASIC has recommended – then a new authority from the client will be required.
Industry fund AustralianSuper is also offering some assistance to Dover advisers in the transition period.
“AustralianSuper will honour third party authorisations on behalf of your clients through to July 6th, with respect to the implementation of advice you have already provided on or before June 8th, 2018. You will be able to continue to access the adviser services team until this date, unless you transfer to a new licensee prior,” said an email from the industry fund to Dover advisers, seen by ifa.
“If one of your AustralianSuper clients has an urgent need for advice prior to June 30, please contact the team. We may be able to arrange advice from one of our in-house or phone advisers to cover this period,” it continued. “If a Dover adviser moves to another accredited licensee, the fund may be able to continue to recognise the adviser as an ‘accredited AustralianSuper adviser’.”
A BT spokesperson also indicated that Dover clients would continue to have access in the interim.
“Dover financial advisers with existing client arrangements continue to have access to BT’s platforms,” the spokesperson said.
“We are working to assist Dover advisers as they move to new licensing arrangements in the coming weeks and will comply with our obligations and continue to review as new information is provided by ASIC and the Dover Group.”
A number of Dover advisers have alleged to ifa that they have been informed that commissions will be suspended for some MLC platforms such as Navigator and Masterkey.
An MLC spokesperson denied the charge, explaining that it is “business as usual”.
CBA jumping at shadows and appear to have made a wrong decision – possibly not even a decision they have authority to make. Those who have been around over the past couple of years and followed the news might have some insight into why CBA are so nervous.
This decision by Colonial First State to stop paying adviser service fees and prevent Dover advisers from implementing outstanding client transactions and advice is disgusting behaviour!!! It shows how Colonial First State has no regard for Financial Advisers or Clients who invest with them. EVERYONE SHOULD AVOID COLONIAL FIRST STATE AND MOVE ALL THEIR CLIENTS TO ANOTHER PLATFORM OVER THE NEXT SIX MONTHS.
It certainly becomes a risk to an adviser, to meet their best interest duties by recommending a product provider that may not accept adviser instructions in extreme circumstances, where his/her licensee is cancelled/revoked.
Individuals/clients in these cases can only obtain financial advice, if they change advisers between now and 30 June.
This is especially distressing for individuals before the end of the FY, where much of tax planning occurs. I wonder, as to how many clients out of the 400 or so affected advisers unable to receive advice, what type of benefits they have missed because of not being able to receive advice?
It is worthwhile to note, the financial system, tax laws, superannuation laws, investment markets, insurance products and estate planning are all areas very complext and intricate areas. Individuals are seeking advice because they want reassurance so their goals in life can be achieved. That is the reason advisers are being sought out.
Understandably, bad actors exist in the financial advice industry – but bad actors exist everywhere. Cleaning up the industry is an important, but so is the protection of financial advisers who are not doing any wrong according to the law and society’s values.
But this scenario is a real sad outcome for so many involved.
what is even more sad is that there is no recourse for the financial adviser. we have no association, no remedy. this is why the current AFSL operating model needs to change. we are effectively, slaves to our masters.
we will not be a profession unless we get rid of the dealer group shackles. the dover incident, which is an unfortunate one, shows us why
Very positive action taken by AustralianSuper and BT for consumer outcome.
Click bait article. Seriously? How is this ‘backing’ in any way?
Again, I don’t understand why Dover planners don’t join Sychron, ASIC bulletproof, have significant relationship with ASIC and are left alone. Join Sychron.
My understanding from a Dover adviser is that Synchron have placed a blanket ban on accepting any advisers from Dover. Perhaps they dont think they are as bulletproof as you make out. The fact that you keep implying a special relationship with ASIC means that you can now probably ensure a visit from someone at ASIC looking to bump some heads.
@Anonymous If Sychron is so good why dont you give us your real name? So we can really evaluate your opinion!
Anonymous is most likely an ex-Sychron adviser merely trying to cause trouble because they were booted by Sychron.