Independents rally behind WealthSure

Describing the move as a “great act of solidarity in this difficult post FOFA environment”, AIOFP executive director Peter Johnston told ifa his members had been kept in the loop about problems at WealthSure for some time.

“Over the past 18 months [outgoing WealthSure CEO Darren Pawski] has kept all [AIOFP] directors informed of the changes to his business model including the enforced departure of over 90 advisers who did not suit their compliance expectations, the appointment of new CEO David Newman and his intention to voluntarily step aside at ASIC ‘s request,” Mr Johnston said.

“It should be noted that these changes had been planned for over the past 12 months and it is business as usual at WealthSure,” he added.

“This is a stark reminder that compliance is a critical aspect of any practice, it must be constantly monitored or the practice principal will be held directly responsible for the actions of their advisers.”

Mr Johnston also paid homage to the outgoing chief executive, describing Mr Pawski as a “great contributor to the plight of independent advisers around the nation” and a “great bloke”.

As part of the enforceable undertaking with the corporate regulator, Mr Pawski will step down from his role as a director of the AIOFP and position on the organisation’s consultative committee, as well as his directorship of Personal Choice Management – the AIOFP’s platform business.

The vacant positions on the AIOFP and PCM boards have been offered to incoming WealthSure chief executive David Newman, who last week told ifa the company is now focusing on its 230-strong “core of loyal and quality advisers” and looking to rebuild.