AFS ills spread to related advisory group
The Salisbury Group (TSG), a planning business with 50 planners, has gone into administration following the recent closure of Australian Financial Services (AFS).
AFS provided TSG with accounting, compliance, secretarial services, regional management and professional indemnity (PI) insurance, but withdrew these services prior to AFS entering voluntary administration in late April.
Company records accessed via the Australian Securities and Investments Commission indicate that TSG is under administration; however Australian Financial Services Licence (AFSL) records state that TSG still holds a current AFSL.
AFS PI insurance expired on 30 April and its AFSL was cancelled a few days later. Prior to this AFS had written to TSG advisers informing them that AFS would not be able to provide PI cover beyond 30 April . AFS urged past and present TSG advisers to seek their own PI insurance cover or to take up a separate PI insurance arrangement through AFS’ existing insurer.
TSG company officers were contacted for this story but had yet to return calls at time of writing.
AUTHOR
Jason Spits
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.
