In a statement to the ASX, owners of Spectrum, Freedom Insurance Group, said it has supported the orderly transition of a large number of authorised representatives to other licensees.
In May, ifa reported that Spectrum intended to close down its AFSL after it was unable to meet a condition with Freedom Insurance Group.
Freedom Insurance Group said it began the cancellation process of its AFSL for both Freedom Insurance and Spectrum with ASIC.
It said the transition of administration services with its insurers announced on 29 April 2019 has now been completed and resulted in a final settlement consideration of $5 million.
Freedom Insurance Group added that the payment is separate to commission and clawback arrangements up to the day of settlement, which have been finalised, and the business will continue to incur costs associated with the wind down.
Further, it noted that despite the cancellation of an AFSL, there may be continuing obligations imposed by ASIC on either company that will need to be addressed, and that the timing of any corporate restructure may also be dependent on ASIC.
Freedom Insurance Group said it is continuing to work closely with its auditors, KPMG, in relation to the finalisation of its accounts, which is expected to occur shortly.
“Spectrum treated their advisers like family” many families are sadly dysfunctional, abusive, and toxic places, where some family members, would gladly sell their own grandmother for a quick buck. Which sort of family was Spectrum? The founder’s public history and pattern of involvement in business failure, makes a mockery of their finger pointing at FIG.
It was obvious to anyone who looked at this business that it was doomed. Shareholders cop a beating and the cockroaches will probably scurry off into the dark until they re-emerge in a new operation, with the same old strategy
Spectrum was a successful dealergroup that treated their advisers like family, it was taken over by Freedom Insurance Group to help fund growth. However Freedom turned out to be a rouge company that was outed by the Roya Commission. The Shareholders like Keith Cohen and John Kolenda made millions, while Spectrum was the take-over victim, where the Spectrum founders lost everything. Despite this, the Founders worked tirelessly to find all the advisers such as myself a new home. Your criticism of the Founders is way off the mark , it is the Board of Freedom Insurance Group and their contractors Greenzone that should be held to account for the Demise of Spectrum.
makes no sense does it?. he also sold to freedom for a large amount of money. very interesting if asic go mark like they did Terry………
I can’t believe how Mark Schroeder, Mark Dorling or Rachel Bennett are getting away with everything, yet nothing has been done to them. Meanwhile, we hear every day that an adviser has been banned for 5 years or permanently due to some minor defects. It just goes to show how corrupted the industry is and if you don’t know the right people you are cursed.
Mark Dorling Left Spectrum Jan 2017 so the above comment is from someone that knows nothing and should do a little research before posting shit
Hi Mark!
Hope you and your pure soul are doing well.