Chapel Road loses flock
Financial Planning Group Chapel Road has lost more than half of its 39 proper authority holders after its licence was revoked by the Australian Securities and Investment Commission (ASIC) earlier this month.
ASIC revoked the group's dealers licence on 1 May after finding the group had breached licence conditions regarding supervision of proper authority holders.
However last week ASICannounced it hadagreed to a conditional stay of the revocation following negotiations between the two parties.
But it was a case of too late for some of the group's advisers. Chapel Road chairman Jim Gellett says quite a lot of the 39 have already departed for other dealer groups.
"A bit more than half have transferred to other dealer groups", he says.
Gellett says the former Chapel Road proper authority holders have now joined several various groups, but would not name which dealer groups had picked up the planners.
However Gellett says the departures may only be a temporary measure for some of the planners.
"It's convenient for them for the time being, while they are making up their minds."
Other Chapel Road representatives including managing director Bill Davies were not willing to elaborate further on the long term position of the departed planners, whose numbers totaled 63 less than two years ago.
The group managed to gain a conditional stay of the licence revocation pending a Administrative Appeals Tribunal (AAT) review, which is still expected to take up to three to four months.
Under the stay conditions, Chapel Road must advise prospective and existing clients and proper authority holders of the revocation proceedings and the stay, in writing.
The group must also provide ASIC with a current client list and contact details of any new clients, as well as an approved product list. During the stay period Chapel Road must also not engage any new staff or representatives.
Gellett says Chapel Road is "hanging in there" and has a good relationship with its clients but he is tightlipped on the future of the group.
AUTHOR
Nicole Szollos
Recommended for you
As the government announces a public inquiry into the collapse of Dixon Advisory, risk adviser Richard Silberman has detailed the three areas that typically lead to an AFSL's collapse.
With a growing number of advisers now running their own business, they need to pivot their career identity to being a business owner rather than just as a financial adviser if they want to futureproof their business.
Zenith Investment Partners has launched a range of new managed account portfolios over the past quarter, including on Insignia Financial’s Expand platform.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
