Spectrum’s AFSL has a ‘key person’ requirement and due to the departure of a number of personnel who were performing duties on behalf of the company with respect to its financial services business, Spectrum is unable to continue to comply with this licence requirement, Freedom Insurance said in a statement to the ASX.
Spectrum has notified ASIC of this condition and is issuing notices today to its authorised representatives terminating their agreements and advising that no further business should be carried on under the agreements.
“Spectrum will support the orderly transition of all of its authorised representatives, and the related clients, to alternative Australian Financial Services licensees where requested,” Freedom Insurance said.
“The financial impact of the closure of the Spectrum business will be advised when Freedom release their accounts.”
Its not right that planners who have faith in their licencee to look after them, are now finding homes. The system is broken if planners and clients are left in the lurch that is out of their control…
dont’ worry FPA, AFA have it all under control. it’s all good. just enrol in one of their courses. you will have to ward off clients from knocking down your door.
100% guaranteed
xoxo
As an ex adviser I can tell you that Spectrum did their best to create a compliant, cooperative almost family environment with the advisers, however the parent company Directors got greedy, starved the Dealer of resources in an environment of ever increasing regulatory demands leaving the Spectrum management in the lurch and now out of work. The Parent company directors “Freedom Insurance Group” sold out for millions before the share price dropped. I take my hat off to the Spectrum managers and team for keeping the dealer group going under enormous stress. Freedom forced out the RM and Key persons and wonder why they had to shut the dealer down. Very sad and very unnecessary.
Nothing do do with the new Climate of financial planning ?/ ie extra compliance , Fees , FASEA , Audit fees coming in , PI cover , More Diary notes , product comparisons , Insurance reviews , Fee for service etc .. Get the popcorn out , they will be dropping like flys soon , except for the mortgage brokers who will write a 30 year loan and get a 30 year trail with no opt in , opt out , FDS etc , a good level playing field with a good Association representing them.
hahahahahahha