AFS passes into history as its licence is cancelled
Australian Financial Services (AFS) has been formally wound up with the cancellation of the group's Australian Financial Services Licence late last week.
According to records available on the Australian Securities and Investments Commission (ASIC) website, its AFS licence ceased to be operational from Thursday last week after the group was placed in voluntary administration with BDO.
The step follows the expiry of AFS' professional indemnity insurance policy on April 30, which placed former AFS advisers in limbo in the event they were sued for their advice while under the AFS banner.
At the time of entering voluntary administration, AFS listed 94 advisers on its website working through 51 practices. ASIC now lists no authorised representatives with the group.
However, further ASIC searches indicate that 13 planners have moved to The Financial Link Group, which is set to be merged with the Titanium Group from this Friday under the new name of Beacon Financial Group. It will be headed by former AFS chief executive Paul Daly.
The withdrawal of the AFS licence has also seen advisers within the group head off to other licensees, with speculation that institutions would benefit now proved true.
BT has picked up 22 planners to its Magnitude Group, MLC has picked up six to Apogee, AMP has gained four to Genesys Wealth Advisers, One Path has taken three and Synchron has picked up one planner.
A further seven have joined independent groups, and according to ASIC records, 38 planners have yet to find a licensee by last Friday.
AUTHOR
Jason Spits
Recommended for you
David Sipina has been sentenced to three years under an intensive correction order for his role in the unlicensed Courtenay House financial services.
As AFSLs endeavour to meet their breach reporting obligations, a legal expert has emphasised why robust documentation will prove fruitful, particularly in the face of potential regulatory investigations.
Betashares has named the top Australian suburbs with the highest spare cash flow, shining a light on where financial advisers could eye out potential clients.
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
