Dover advisers left in limbo
The future of more than 400 financial advisers operating under the Dover Financial Services license is in doubt, following confirmation that Dover had entered into an agreement with the Australian Securities and Investments Commission (ASIC) which will see its license cancelled, effective from 6 July.
The advisers were informed of the company’s arrangement with the regulator via a company-wide e-mail on Friday with the consequence that their authorised representative status was being withdrawn, meaning that only advice given before last Friday could be implemented.
The move by Dover and ASIC followed on from the appearance of the company’s principal, Terry McMaster before the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry and his controversial collapse while giving testimony during proceedings.
ASIC spokesmen at the weekend indicated that Dover had acted largely on its own initiative in announcing the termination of its Australian Financial Services License and the consequent termination of the AR status of its advisers.
An ASIC spokesman noted that the matter had not gone to hearing but as a result of the Dover notice it was clear that Dover would case providing financial services.
The future of planners operating under the Dover AFSL will be problematic not only because of the cancellation of the company’s license but because of suggestions made during the Royal Commission that it had employed planners who had previously exited other planning firms under a cloud.
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