Spectrum Wealth Advisers shut down its AFSL because it was unable to continue meeting its ‘key person’ requirement 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.
In a statement to the ASX, Freedom Insurance Group said the result reflects a number of events affecting the Freedom business, including the:
- Cessation of sales in October 2018 following the release of ASIC Report 587 into the sale of direct life insurance and the resulting restructure of Freedom’s operations;
- Impact on Freedom following the findings of the Hayne royal commission;
- Write down of goodwill with respect to Spectrum Wealth Advisers; and
- Provision for the customer remediation program.
“With Freedom winding down its remaining operations, the role of CEO has been made redundant and as a result Sean Williamson will leave Freedom in early August,” Freedom Insurance said.
“Freedom would like to recognise the significant contribution Sean has made in navigating Freedom through what has been a complex and difficult process.”
I am very sorry that people within the Financial Services (FS) are losing their job. No-one wants this. I am however really bored by all the complaints within the FS industry and blame being laid at Asic’s door as a result of the Royal Commission. If firms had just taken a long hard look at their practices and staff had been proactiv in pointing out how unfair practices could have been improved to be ethical there would not have been the need for a Royal Commission.I for one look forward to AI for advice. Client Mum’s and Dad’s filling in a form online each year in the correct manner for a good outcome to the client and firm at a cost of $500 and not $5,000 can produce bulk steady income to any practice with good follow up electronic processes.
“Freedom would like to recognise the significant contribution Sean has made in navigating Freedom through what has been a complex and difficult process.” I’m sorry. If Mr Wiliamson had performed his role with expertise and vision, Freedom would still be around today. Its incredible how these managers fail miserably but leave with glowing testimonies ready for the next rehash.
I think from a fiduciary director responsibility this is absolutely appalling
So the directors who would have known full well the financial situation have not acted sooner
Sorry i thought insolvency was a prison offence
IFA there is your story
Discussing why ASIC have not held personally liable the directors
Bad companies deserve to die.
Good one Freedom , $33 million loss just for the half year ?? Who does your business planning to achieve this ? , Who are your now very sad shareholders ? Did they know who and how the sinking ship was being run ?
Good one ASIC – another business shuts down because of your useless regulation and the end result is the customers are no better off – in fact they will end up paying more in premiums due to the reduced competition!