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Money Scandal-plagued Dover Financial shuts down, as ASIC investigation continues

01:32  12 june  2018
01:32  12 june  2018 Source:   abc.net.au

'Read email thoroughly, it contains unhappy news': Dover shuts down

  'Read email thoroughly, it contains unhappy news': Dover shuts down Its founder sensationally collapsed at the Royal Commission now he's closing the doors on Dover's advice arm.Dover Financial, based in the Melbourne suburb of Cheltenham, is one of the 10 biggest financial planning outfits in Australia and has more than 400 planners operating under its licence around the country.

No specific reasons for the shutdown were provided by McMaster who claimed the group had been scrutiny for the past few months, and this would continue during the shutdown . According to ASIC records, Dover had 393 advisers as at 1 June 2018.

The royal commission was ordered by Prime Minister Malcolm Turnbull last year following a series of scandals involving financial misconduct. “However, as they occurred during my tenure as CEO, I believe that stepping down as CEO is an appropriate measure to begin the work that needs to be

Terry McMaster.© AAP Terry McMaster. One of Australia's largest financial advice firms, scandal-plagued Dover Financial, will shut down its business from July 8, amid an ongoing investigation by the corporate watchdog.

Dover has been under investigation by the Australian Securities and Investments Commission (ASIC) since last year.

This was well before its owner Terry McMaster famously collapsed on the witness stand in April — after he was accused of lying, during his intense grilling about Dover's "Orwellian" client protection policy at the banking royal commission.

Mr McMaster conceded this policy was a "misnomer", particularly since it offered more legal protection to the firm than its customers.

'Clients left out to dry': Dover collapse prompts calls for compo scheme

  'Clients left out to dry': Dover collapse prompts calls for compo scheme The collapse of Dover has sparked renewed calls for a last resort compensation scheme to cover customers when their adviser's firm ceases to exist.Dover owner Terry McMaster on Friday told the 400 or so advisers that operated under its banner that their coverage on Dover's licence would be removed immediately after the corporate regulator signalled it would cancel the licence. That meant advisers would have to cease giving new advice immediately and stop servicing the estimated 40,000 to 50,000 clients completely by the first week of July.

An Australian Securities and Investments Commission ( ASIC ) spokesman said in a statement that it had started investigating Dover last year and had signalled to the company that it was "minded to suspend or cancel Dover ’s Australian Financial Services Licence (AFSL)" at a hearing.

The NSW council of the RSL has agreed to step aside amid mounting pressure from the rank-and-file as well as the league's national board over the financial scandals plaguing the state leadership.

The regulator confirmed it was "minded to suspend or cancel Dover's AFSL" (Australian Financial Services Licence), and had served the firm with a notice of hearing.

"The matter has not gone to hearing but as a result of this notice, Dover and Mr McMaster have advised that, amongst other things, Dover will cease providing financial services," ASIC's spokesman said.

"At this stage ASIC does not intend to comment further. ASIC's investigation is continuing."

Australian regulator sues Westpac bank claiming poor financial advice

  Australian regulator sues Westpac bank claiming poor financial advice Australia's securities regulator said on Friday it had filed a lawsuit against No. 2 lender Westpac Banking Corp (WBC.AX) over alleged poor financial advice.The Australian Securities and Investments Commission (ASIC) on Friday said it filed a Federal Court lawsuit accusing Westpac of failing to act in the best interests of customers, providing inappropriate financial advice and failing to prioritise the interests of clients.

UTV | COLOMBO – Cambridge Analytica, the political consultancy at the centre of the Facebook data-sharing scandal , is shutting down . “We are continuing with our investigation in cooperation with the relevant authorities.”

Lawyer and financial services executive Terry McMaster last week wrote to authorised representatives of his Dover licensee business announcing the cancellation of its AFSL following the intervention of ASIC .

The Melbourne-based company employs more than 400 advisers and about 260 practices across the nation.

Its closure will leave around 30,000 of its clients with $20 billion in funds under advice in limbo.

Among other scandals involving the company, the royal commission heard that Mr McMaster threatened defamation proceedings after his client complained about Dover to the Financial Ombudsman Service.

Mr McMaster also hired financial advisers, who had issues with their previous financial services licenses, including "serious breaches" of their licence conditions.

Under his employment, one adviser Julie Hamilton was banned by ASIC for three years, and the other, Koresh Houghton, was hit with a permanent ban.

Prospa: The 'biggest float' of 2018 delayed indefinitely, as regulators investigate fintech loan contracts .
<g class="gr_ gr_8 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace" data-gr-id="8" id="8">Prospa</g> was marketed as the "biggest float of the year", but its initial public listing (IPO) on the ASX has been delayed again — this time, indefinitely.&nbsp;The online small business lender — or "fintech" as it likes to be called — was supposed to begin trading on Wednesday, but shelved its float with just 15 minutes to spare.

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