An industry super fund and multiple platforms have pledged to continue providing services to Dover advisers until the cancellation of their licence, following a pre-emptive strike by CBA subsidiaries to suspend authority and payments.
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”.
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