September 17, 2018
ASIC has commenced court action against Dover Financial Advisers and its sole director, Terry McMaster alleging they misled and deceived clients.
The corporate regulator announced today that on 12 September it had commenced civil penalty action in the Federal Court of Australia over Dover’s use of its Client Protection Policy (CPP) which was in place from September 2015 to March 2018.
ASIC claims the alleged behaviour took place during that time because the CPP:
- Contained false and misleading representations as to the rights and protections available to clients
- Created a significant imbalance in Dover’s and its authorised representatives’ rights and obligations compared to those of clients
- Sought to protect the interests of Dover and its authorised representatives by avoiding liability to clients for poor financial advice
The regulator also alleges that McMaster was knowingly concerned in that conduct, as he was named as the Key Person on Dover’s AFSL, and was also the sole director and only responsible manager during the relevant period.
ASIC stated it was seeking declarations that Dover and McMaster contravened the Corporations Act and ASIC Act, and was also seeking orders that Dover and McMaster pay pecuniary penalties for the contraventions of the Acts.
The court proceedings follow previous enforcement action against Dover stemming from the use of the CPP which led to the cancellation of Dover’s AFSL and McMaster permanently leaving the financial services sector (see: Dover Financial Advisers to Close in One Month).