Speaking to ifa, Lifespan chief executive Eugene Ardino said that while the cause of Dover’s abrupt closure last Friday appears to be “related to activity at the licensee level” rather than at an adviser level, public confidence in non-institutional dealer groups will likely be damaged.
“It’s chaotic at the moment in the industry; my biggest concern is that it dents confidence in our sector, that being the privately-owned sector,” Mr Ardino said.
“However, I think it’s important to note that Dover’s only one organisation; there are lots and lots of dealer groups out there that are non-bank or non-insto and many of them don’t have any issues.”
Mr Ardino added that non-compliant behaviour is typically a rarity for non-bank and non-institutional licensees due to the difficulties businesses of that size would face in continuing to operate.
“When there is an issue in our sector of the market, it gets sorted. ASIC steps in and intervenes or capitalism sorts it out because they get claims and it puts them out of business,” he said.
“There’s pros and cons to that, but it does get resolved – you don’t end up in those circumstances where you have advice businesses that have problems that go through enforcement activity after enforcement activity and don’t improve, it does get sorted out.”
ever met a lawyer before? world wide community of 7bn people ranks them quite a bit below used car salespersons which i think is very unfair to used car salespeople.
lawyers don’t have a best interest duty, the only best interest duty they have is to themselves.
ASIC recently confirmed the new Home Equity release scheme administered by Centrelink and conceived by Treasury is a “credit” product. Treasury announced this as the new income stream of the future. Yet advisers can’t advise on it. Accountants yes. ASIC clearly hates advisers.Loves the Banks. Funny how independant advisers love to fight amoungst ourselves.
Off topic, but when did they say this? Do you have a reference you could share?
we need an association for self licensed advisers who are interested in education, doing the right thing always, putting the client first. can we start a facebook page, we’ll probably get all the members from the AFA and FPA
It is a shame that the Dover model,which was one of the best,has to go the way of the dodo. I wonder why the business couldn’t have been sold as a going concern and this model retained ?
One of the best? says who? It would appear ASIC wanted to test exactly that…but Dover folded so we will never really know.
Wasn’t a key concern that Dover had contractual terms to ensure they would not have to compensate clients for the financial impact of poor advice ? A hell of a price for independence ?
Anyone in any dealer group would be foolish to feel safe, to say Synchron have a special or closer relationship than others is stupid, the heat is on plain and simple, having your own AFSL is the future.
Sure, so long as you have your own software developer, compliance manager and practice manager which are all required to operate compliantly. There is a reason why people use licensee. Running your ‘own’ licensee and cutting corners will only see you taking the McMaster dive too..
i like dat, the mcmaster dive nice one.
Spoken like the owner of a large licensee. You forgot to mention needing the State Manager, National Manager, Area Manager, their personal assistants etc etc. If you’re happy for paying for all those salaries, pages of auditors that don’t return your call then do nothing. Self Licensing is the future for compliant honest advisers. My compliance is better, my support is 3 times improved being self licensed compared to when I was paying for all those wages with some of the largest licensees in the country. Plus my advice is focused on the client and is conservative.
self licensing is better that is the future. FAT dealer group heads will tell you otherwise as they want to maintain their cushy lifestyle
Well said, Anne. I have been self-licenced for over 11 years (one man band) and compliance is not difficult, not too expensive, but I have been told I have the lowest risk business in the country. I teach clients to act for themselves, think for themselves and use me as a consultant/adviser rather than someone who does everything for them and certainly not investing – about which we ALL know next to nothing… Th etime we spend together on family, estate planning issues and understanding (and avoiding) risks as well as explaining how money works; how wealth is created (by them – not us!) is what makes the relationships special and very long lasting. You keep up your good work – me too – and we’ll watch on as others are whinging (usually as “anonymous”) but rarely taking responsibility for anything much at all. 🙂
How can anyone that’s watched the BankingRC assert that “non-compliant behaviour is typically a rarity for non-bank and non-institutional licensees due to the difficulties businesses of that size would face in continuing to operate.” Institutional licensees are no better managed (and often more conflicted). They are only better resourced to stonewall and remediate.
What a complete waste of space this article is.
Poor journalism, no meaningful content and what appears to be nothing more than a self promotion exercise by a CEO.
Pick up your game IFA.
Positive releases from the associations and dealer groups will overcome public perceptions, especially at adviser levels. Time to exert control of negative perceptions at all levels. Was Dover an example or were there extreme major issues. Previous misconduct issues were addressed by E U s – the big guys. It would be stupid to think the big guys got off light by comparison- ASIC is not that stupid- and they are probably in the middle of further investigations with the big 4-5 or 6 so it is not over yet, especially after admissions from management, the root cause.
Disagree, Sychron have 4 page Risk Insurance Only SOA, ASIC approved. Our director has very close relationship with ASIC. We are fastest growing non aligned dealergroup in the country and ASIC bullet proof. Advisers out there, join Sychron.
I would not be crowing about being ASIC approved there is no such thing in fact ASIC have taken action where others have stated such. As for the close relationship with ASIC, all the more reason to look at Sychron, we have seen how cosy ASIC have been with the Big End of Town. No one is ASIC Bullet Proof. I’d keep my mouth shut if I was you and I think your dealer will tell you the same.
ASIC Reg 90 issued in December last year outlines a sample scaled and risk only SOA at 23 pages.
Are you implying your Director has a cosy relationship with the Government regulator?
ASIC bullet proof dealer group?
Come on, enough of these misleading cut n paste comments to elicit new adviser leads.
You obviously want Sychron to be investigated as closely as the banks, AMP and Dover, and I guarantee you that if they were the outcome would be exactly the same if not worse. ASIC does not approve SOA’s, and it’s scary that you think this is true. ASIC hates financial planners, and only has a close relationship to others who hate financial planners, i.e the failed CPA advice arm and union funds. Now that Dover is gone, Sychron is very likely ASIC’s next target and once they come knocking I’m sure your attitude will change.
When did ASIC start approving templates???
ASIC do not “approve” or endorse documents produced by licensees or representatives. Any representation to that effect by any licensee or representative to a consumer would likely constitute an offence under the ASIC Act 2001.
Comedy festival back in town again!
ASIC & Dover need to come clean and clearly state what the issues were with this. I know a few advisers who are/were with Dover and they’ve always struck me as ethical, diligent advisers with their clients best interests at heart. This blanket shroud thrown over all Dover advisers is no good for anyone, but most especially for decent advisers and their clients.
How can ASIC be so tough on Dover, yet still allow the likes of AMP, CBA, Finwiz continue to operate? It beggars belief without additional explanations from the regulator. I saw something yesterday on Twitter along the lines that ASIC turns up late for the accident and only kicks the corpse once its already dead.
How ironic that insto groups get a bad wrap, yet most of the advisers that they terminate end up in smaller independent groups, incl Dover.
“non-compliant behaviour is typically a rarity for non-bank and non-institutional licensees due to the difficulties businesses of that size would face in continuing to operate”. This is simply untrue. More likely non compliant behaviour goes undetected because these businesses are typically not resourced to detect these behaviour in first place.
Or that they have not be investigated to the degree that the Banks, AMP and Dover have. ASIC would have an absolute field day at many smaller licences, and would be able to uncover the exactly same if not worse issues. The holier than thou attitude of the non institutional players is misplaced, considering the example set by their brethren, Dover and Henderson, at the royal commission.