Speaking exclusively to ifa, Mr McMaster said that Dover was a “compliance-based, conflict-free AFSL, allowing advisers to run practices without institutional influence and with a completely open approved product list”.
“Dover did not accept institutional income, which meant it recommended industry funds over retail funds and index funds over retail managed funds, because these are obviously much better for clients. The institutions did not like this,” Mr McMaster told ifa.
In one of Dover’s professional indemnity (PI) insurance information documents from March 2018, it lists a qualified compliance team of 22 staff, including six solicitors and three responsible managers.
Mr McMaster said Dover requested an ASIC audit in February 2016 as part of its compliance process.
“The audit began in May 2016. Not 2017, as repeatedly stated by ASIC,” he explained.
“We formally asked for an interim report and undertook to act on all findings in November 2016 but were told ‘no’ by ASIC. We repeatedly asked for meetings throughout 2017 but again, we were repeatedly told ‘no’ by ASIC.”
According to Mr McMaster, Dover engaged five different law firms with experience in AFSL compliance to review its operations, including Holley Nethercote and imac legal in 2016; Sophie Grace in 2017; Integrity Compliance in 2018 and MLA Solicitors in 2018.
“These five law firms did not express concerns with the CPP,” Mr McMaster said. “In particular, Holley Nethercote and imac legal in particular reviewed the CPP in detail without raising concerns other than to conclude with the comment that the CPP ‘lacked probative value’.
“Dover voluntarily provided two expert legal/compliance reports to ASIC in 2017, each of which indicated there was no problem with the CPP. ASIC did not respond.
“But we now know ASIC internally dismissed both the reports as incompetent. ASIC didn’t tell Dover this. It would have been nice to know.”
Meanwhile, Dover has faced accusations that it employed rogue financial advisers who had been investigated by their former licensees.
In April, the Hayne royal commission heard that Dover engaged adviser Adam Palmer, who was being investigated by AMP-aligned dealer group Genesys Wealth Advisers when he joined Dover.
The royal commission also heard about former Dover adviser Andrew Smith. Prior to joining Dover, Mr Smith resigned from Westpac after he was found to be churning clients through fixed income products and asking his clients to sign blank documents.
But according to Mr McMaster, ASIC was happy with the conduct of these advisers during their time at Dover.
“ASIC approved both the Andrew Smith statements of advice and the Adam Palmer statements of advice,” he claims.
Mr McMaster’s comments follow ASIC’s decision this week to commence civil action against him and Dover. ASIC is seeking a declaration and penalties from Mr McMaster in relation to the company’s CPP.
More to come.
He will throw everyone under the ASIC bus but himself. They can take one for the boss
Interestingly, McMaster was the only AFSL witness who did not throw his advisers under the bus. He stood up for every one of them including two banned advisers. Would your AFSL do that?
No because they wouldn’t get into that situation in the first place.
Remember at the Royal Commission he was blaming Mr Wong for all the Dover stuff ups. The question was ask where is Mt Wong. Answer Vietnam I think.
Bizarre that a lawyer would try to disclaim their way out of a legal obligation owed to a client. More bizarre if ASIC sat on the breach given the severe nature for a period of 2 years.
legal eagle, he can do anything. he’ll just faint, no more questions please. thanks.
There is a lot of manure in most comments by people with no names. All I will say is that ASIC are spineless and if confronted one on one they would say nothing because that’s what spineless people do.
yeah, and you have a name “dave from perth” that’s not anonymous
Odds of malicious anon/s being from a) former Dover rival that is glad it wasn’t them up there and/or b) someone hoping anon comments degrading McMaster will be enough to project their anxieties regarding what is to come for them following the RC and over the next few years…
Other court cases will come to life. McMaster will be shown up as the crook he really is.
do tell
The ATO hasn’t started on Terry McMaster yet. The main game is still coming down the road.
OMG that’s true he’s going to get hammered there too
And the bodies (FPA) that represent advisers have said…ZIP . I just find it so bizzare that the CBA gets in trouble and Senior Management recommends we all go back to school and the FPA can come out with a letter of support yet there press release is blank.
FPA and AFA only represent their annual fee paying members therefore they have no obligation to speak on behalf of mcdoodoo
oh wait, they don’t speak on behalf of the fee paying one’s either and if they do, they mess it all up by speaking
I would sum it up like this, ASIC could not close down the BANKs or AMP as they are far to big, Terry McMaster is one man that had built a very compliant AFSL from the ground up, Why wasn’t Dover offered an EU ? all the banks and AMP have had EU’s. Their is certainly more to this than any of us will ever know, personally think we should have a Royal commission into ASIC.
Dover is an easy kill for ASIC, the banks and AMP, although much worse, are in the ‘too hard basket’.
What a regulator.
Fainting = Guilt
knockout punch delivered. i call it channeling Salim same same but different
fainting = most definitely guilt, = i don’t want to be humiliated by probing questions which will undo me in front of a national audience of my peers who dislike me with a passion
Please stop with “Fainting = Guilt” comments Poppy. I am sure you will never be in his situation as you would not be able to build an organisation like Dover yourself. If you think you can do better, let us all know, when we can sign up and what fees will be required to pay (and a guarantee your compliant). If not, please say nothing.
that’s right no one in the world can build an organisation like you terry. only you can. maybe that just sums up why you are in the position you are in today pal
you are going down buddy and there is nothing to stop that, no one can stop this now
terry is like the Donald trump of australia, less the business acumen, presidency, and net worth in the billions, there is one thing they will have most in common : bankruptcy of an associated entity (in terry’s case probably personal too)
How many more matters are ASIC even sitting on or failed to action. I have provided two easy wins one closed as it is too old ( yet the adviser mentioned at the RC ) and the other the largest Credit Union in Australia ( just like the banks and AMP) yet they closed the matter a little while before the RC. ASIC =Open a matter Close a matter = one result -ASIC it does not work that way-
How about an independent INVESTIGATION into the runnings or failure of ASIC so it is just the public service with a job for life – not the real world any more!!!!!
If you examine ASIC actions / enforceable undertakings etc, ASIC has always gone after the “low hanging fruit” and rarely take on those with resources such as banks, super funds etc., that have the capacity to put up a legal fight. Plenty of instances of small players having action taken against them, whilst larger players are publicly doing the exact same thing.
Secondly, re above story and very important to understand, if ASIC gathers documents from your licensed business and takes no action, that is NOT a signal that those documents were compliant at that time. In many cases, ASIC waits and gathers more supporting evidence if they think something is wrong.
Thirdly, and sadly not understood by most license holders, is that your lawyer can be wrong, but not negligent. If you don’t understand that concept, then you should ask your lawyer for clarity.
Finally, the biggest misunderstanding by ACL/AFSL holders is that you can be complying with the letter of the law as advised by your legal counsel, but ASIC can take action based on the ‘intent’ of the law. It is very important to understand this difference.
Class action from the dover advisers against McMaster. I have never met a more narcissistic egomaniac than McMaster. He deserves everything he gets!!
Really? I focus on actions, not innuendo. How has he screwed clients again?
you must know him personally, very true description
class action has already commenced
Please tell, we will join instantaneously
Forget ASIC for a second, someone should contact the AFP, he should be on an airport watch list.
You obviously haven’t met Mark Bouris then? Only difference is that Bouris has the media & politicians onside. Ask the many ex employees and franchisees, and they’ll tell you a completely different story. ASIC is choosing to turn a blind eye to his organisations many, many, many compliance issues.
Class action because you do not like him? Have you got an argument with, you know, law stuff in it?
The Banks, AMP and Industry Funds can do what ever the hell they like, ASIC even ask them to write their own press releases when they break the law, ASIC fine them poultry amounts to look like something is done but realistically do F**K All to stop or restrict the constant law breaking.
Come from an IFA approach and ASIC are ready to kill you anyway possible.
ASIC is the most confused and useless regulator for IFA’s.
“poultry” amounts….is that like chicken feed….
It’s “Paltry”,not Poultry, that refers to chickens
I can sleep at night now. Thank you.
ASIC in the pockets of the banks
Never had anything to do with Dover, but I sincerely hope Terry goes down swinging. ASIC’s complete and utter incompetence needs to be shown.
oh don’t you worry, he’ll go down in flames
Terry I think most of us would be interested in your explanation of the $500,000 excess on the PI policy. Please advise at your convenience.?
https://www.ifa.com.au/news/25914-asic-forced-mcmaster-s-hand-on-dover-closure
Check this out – have a look at the comments.
Yep fair call but how does ASIC close down Dover and yet let the Banks, AMP and their buddies at ISA go completely unscathed ? A crazy and confused regulator is ASIC.
Perhaps the answer is in bonus targets for ASIC staff – if they need to make bonus targets they go an easy target without a huge legal department – or a future employment/job for ASIC staff. Either that or ASIC is crazy and confused at best.
RIGGED WITCH HUNT!
Whole industry is fucked
true and imploding
i think Terry can make a comeback as a life coach / strategist. we can all learn from his mistakes. maybe even write a book.
Strategist? Yeah.. If it all gets too hard just faint.. Good strategy.
Popcorn at the ready…
ASIC is playing catch, up at the urging of the big boys. This is a complete over reaction. When this stuff gets to court ASIC will have no credibility, if that is at all possible. Sign offs everywhere, and ASIC still wants to waste taxpayer funds. Can we have Medcraft as a witness please.
It will be very interesting to see how this all plays out. But what must never be forgotten, is the disgraceful way ASIC treated the hundreds of advisers who were licensed with Dover, and their thousands of clients, who were thrown into disarray with zero notice, right before the end of the financial year. These faceless thugs need to be held to account and it must never be allowed to happen again.
This reminds me of the “cowboy” culture at the ATO. Just out to get scalps, no matter what. I think we are forgetting the real victims here – Advisers, their staff, and their clients. All have been impacted greatly.
If this was a real western, McMaster would be The man with no name, aka Anonymous
Not surprised at all…ASIC are a rogue regulator completely out of touch with what Financial Planners actually do. They work on a premise of being so incompetent in stopping poor advisers they prefer to wait till a bad situation explodes and then roll on in with the big stick. Because though they prefer to wait till a small problem becomes a big problem the whole industry then suffers.
Sorry what big stick has been used on the Banks, AMP, Industry Funds, etc
Yeh ASIC have whacked them with a tooth pick 🙄
Didn’t you know.. ASIC do nothing pro actively until it hits the fan , then blow their own horn about how great they are after the event when clients have lost money. Hey, you can set up a dob in hotline for planners who witness unscrupulous operators , then you can investigate before the problem becomes worse……….. No I tried that on 13 different occasions over the last 15 years , and they did not do anything , send me any follow up , just give us the standard , yeah , go away . Why would I continue to report ?
The Truth is one more story that is seldom heard. This paints a witch hunt by ASIC. Or at least a desire for ASIC to win a scalp regardless of evidence. Either way, a terrible process and outcome. Maybe ASIC should be in the witness box.
doubt it terry, they’re still mopping up your pee
think asic are more likely getting their own adult diapers for what may be to come… hey did you hear Kell resigned?
This will be a very interesting case
This one will be worth watching.