Authorised representatives under Spectrum Wealth Advisers have been told they will need to find a new licensee after 30 June as the wind down of the business continues.
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.
Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.
You can contact him on [email protected].
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