{"id":41425,"date":"2018-06-30T10:00:53","date_gmt":"2018-06-30T00:00:53","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=41425"},"modified":"2018-07-04T08:17:30","modified_gmt":"2018-07-03T22:17:30","slug":"asic-reveals-reason-for-dover-closure-as-mcmaster-exits-industry","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2018\/06\/30\/asic-reveals-reason-for-dover-closure-as-mcmaster-exits-industry\/","title":{"rendered":"ASIC Reveals Reason For Dover Closure as McMaster Exits Industry"},"content":{"rendered":"

ASIC has revealed the closure of Dover Financial Advisers was triggered by concerns it had around the ability of the group to comply with financial services laws, and owner and director, Terry McMaster<\/strong>\u00a0would be permanently leaving the industry.<\/p>\n

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Dover principal, Terry McMaster will leave the advice sector<\/figcaption><\/figure>\n

In a recent statement, the regulator explained that the closure followed its acceptance of a Court Enforceable Undertaking (CEU) on 28 June from Dover and McMaster, who is named as the Key Person on the advice group\u2019s AFS Licence.<\/p>\n

ASIC added that under the terms of the CEU, Dover would cease operating by 6 July 2018, would apply to cancel its licence and McMaster would remove himself permanently from the financial services industry. This, in turn, led Dover to make its sudden closure announcement on 9 June (see: Dover Financial Advisers to Close in One Month<\/a>).<\/p>\n

At the time of the closure announcement, neither Dover nor ASIC provided reasons for the closure apart from the regulator stating the decision to close the advice business came from Dover and McMaster (see: Dover Shutdown Not Initiated By ASIC<\/a>).<\/p>\n

The latest statement from ASIC, however, notes that on 18 May the regulator \u201c\u2026notified Dover that its concerns arising from the [Client] Protection Policy were significant and that ASIC would conduct an administrative hearing to assess Dover\u2019s ongoing ability to operate a financial services business\u201d.<\/p>\n

\u201cSubsequently, ASIC and Dover engaged in discussions in relation to ASIC\u2019s concerns.\u00a0Dover informed ASIC it would cease operating its financial services business under a timetable to be negotiated with ASIC,\u201d the regulator added, in its statement.<\/p>\n

ASIC stated that its concerns about Dover\u2019s Client Protection Policy were raised with the group on 22 March 2018, as part of a wider, and ongoing, investigation which began in 2017.<\/p>\n

ASIC\u00a0\u201c\u2026notified Dover that its concerns arising from the [Client] Protection Policy were significant…”<\/h6>\n

The regulator added that McMaster prepared the Client Protection Policy, and Dover\u2019s authorised representatives were required to refer to it in statements of advice provided to their clients, but in ASIC\u2019s view the policy \u201c\u2026was designed to burden clients with the liability for losses resulting from advice that was negligent, inappropriate or not in a client\u2019s best interests\u201d.<\/p>\n

The policy, which was offered from September 2015, was withdrawn by Dover on 29 March 2018 and ASIC noted the CEU resolved its concerns regarding the policy but stated that in relying upon it \u201c\u2026Dover had failed deliberately and systematically for over two years to:<\/p>\n