{"id":41291,"date":"2018-06-19T19:02:38","date_gmt":"2018-06-19T09:02:38","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=41291"},"modified":"2018-06-20T07:38:12","modified_gmt":"2018-06-19T21:38:12","slug":"dover-closure-highlights-licensing-bias-against-advisers","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2018\/06\/19\/dover-closure-highlights-licensing-bias-against-advisers\/","title":{"rendered":"Dover Closure Highlights Licensing Bias Against Advisers"},"content":{"rendered":"

The rapid closure of Dover Financial Advisers has highlighted how the current financial advice licensing regime favours institutions ahead of advisers and clients, an industry consultant has claimed.<\/p>\n

\"\"<\/a>
Connect Financial Service Brokers CEO, Paul Tynan<\/figcaption><\/figure>\n

Responding to recent news that Dover would close in under a month (see: Dover Financial Advisers to Close in One Month<\/a>), Connect FSB Chief Executive, Paul Tynan<\/strong> claimed there were flaws in the licensing regime and questioned the hurdles being placed in front of Dover advisers seeking new licensees.<\/p>\n

Tynan said that alongside being unable to provide service to existing clients, Dover advisers also had \u201c\u2026an almost impossible task of finding a new AFSL within a three-week timeframe\u201d.<\/p>\n

He claimed that unpaid remuneration from product manufacturers may not be released to advisers with some manufacturers confirming they were not passing on any revenue to Dover advisers at this time.<\/p>\n

\u201cAs if this situation and time-frame wasn\u2019t bad enough and things couldn\u2019t deteriorate any further, ASIC has warned potential AFSL\u2019s that they must be diligent in processing any ex-Dover advisers \u2013 further hindering their endeavours,\u201d Tynan said.<\/p>\n

\u201cIs it any wonder then that several institutional dealer groups have said they will not licence or allow their advisers to buy any ex-Dover businesses,\u201d he added.<\/p>\n

\u201cWhat did Dover advisers do wrong that warrants this appalling retribution…”<\/h6>\n

Tynan questioned the treatment of Dover advisers and said the larger issue was the many people who had lost access to financial advice since the announcement of the closure on 8 June.<\/p>\n

\u201cWhat did Dover advisers do wrong that warrants this appalling retribution when they are forced to work within a licensing framework that is biased against both the adviser and their clients?\u201d Tynan said, adding many advisers still had financial commitments despite having no income stream at present.<\/p>\n

\u201cWho cares about the well-being of thousands of clients, their families and businesses who have lost their advice partner because of the financial advisory sector\u2019s licencing system? Let alone 400 advisers and their staff who have effectively become unemployed,\u201d he added.<\/p>\n

Tynan was also critical of the heads of larger licensees and their muted response to the news of Dover\u2019s closure claiming it highlighted the silo mentality that exists within the financial advice sector.<\/p>\n

\u201cThe most damning outcome of this fortress mentality by the industry\u2019s institutions, key stakeholders and regulatory bodies is that their response has been to focus on self-interest which is not aligned to or reflects the best interest needs of the consumer,\u201d Tynan said.<\/p>\n

\u201cIf consumer confidence is to be restored, the entire advice community together with ASIC must work together to support and transition the 400 ex-Dover advisers to new AFSLs.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The rapid closure of Dover Financial Advisers has highlighted how the current financial advice licensing regime favours institutions ahead of advisers and clients, an industry consultant has claimed.<\/p>\n","protected":false},"author":3,"featured_media":41326,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,6],"tags":[4247],"class_list":{"0":"post-41291","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-compliance-regulation","8":"category-dealer-groups","9":"tag-feature"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/41291","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=41291"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/41291\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/41326"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=41291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=41291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=41291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}