Dover commences bankruptcy proceedings against former ARs

Dover has started bankruptcy proceedings against 10 former financial planners who have refused to pay judgement debts, according to Terry McMaster, who said “it’s not what Dover wants to do”.

“We have tried everything including concessional offers and repayment schedules but these few advisers will not respond. Most are still practising, and are with new AFSLs so they can pay. They are choosing to defy the court: commercially this is not that smart because obviously a financial planner cannot practice if bankrupt,” Mr McMaster told ifa.

Roughly $1 million in outstanding debts has yet to be recovered. Mr McMaster said that Dover has been “extremely patient”, with some of the debts now being four years old, but that “patience has expired”.

The deferred licence fee arrangements allowed new Dover advisers to push back a $20,000 fee by up to a year from their start date (the “Dover 360”). When Dover collapsed, the debts were called in, drawing the ire of some former ARs due to the lack of notice around the company’s difficulties with ASIC.

“Given the COVID-19 pandemic and Victorian lockdown and quarantine, this is clearly a strategy to make it as difficult as possible to respond, appear, consult with lawyers, and defend oneself, especially from interstate,” a former AR, who wishes to remain anonymous, told ifa in September.