Beacon advisers held ‘ransom’ while IIOF money remains missing

Financial advisers operating under Beacon’s AFSL want to leave the embattled dealer group but fear the consequences of doing so, sources close to the situation say.

It is understood that Beacon advisers are scared to leave the group after witnessing the poor treatment of those who have already left.

Sources close to the situation told ifa that after learning one Sydney-based adviser has already gone into liquidation owing $450,000 to the Linchpin IIOF fund, Beacon advisers have “serious fears” that they will be unable to recoup client monies that were invested in the fund. The IIOF fund is currently at the centre of an ASIC investigation.

Beacon advisers told ifa that their primary focus is to get their clients’ money back and move to a new dealer group.

But any hope of doing so is fading fast after advisers claim that any of their peers who have left Beacon experienced “poor treatment”.

“Exiting advisers have been victims of false allegations, ASIC complaints, FOS complaints and general slander against their good names,” said one source.

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“The Beacon group hold the advisers and their clients to ransom while they scramble to find a purchaser to buy the AFSL so they can repay the loans. They will only sell if they make a profit.”

Despite being under investigation by the corporate regulator, Beacon will go ahead with its conference in Adelaide and the Barossa Valley between 7 October and 12 October.

Advisers received an email reminder to register for the conference, which begins on 8 October at 8am.

“The 2018 Conference is on and commences in a little under eight weeks. Still time to register and get yourself organised,” it reads.

“We have secured one of Australia’s leading and most successful corporate entertainers and MCs to host the conference and keep us on track.

“No trip to Adelaide is complete without visiting the South Australian wineries. McLaren Vale and Barossa food and wine at key icons of South Australia and we will be visiting both.”

More to come.

 

Beacon advisers held ‘ransom’ while IIOF money remains missing
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