The Australian Securities and Investments Commissions (Asic) has lodged a civil penalty action against Dover Financial Advisers and its sole director, Terry McMaster.
Dover has been accused of misleading and deceiving clients from September 2015 when it started using its client protection policy.
It was withdrawn in response to Asic’s concerns in March 2018, because it:
- 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; and,
- Sought to protect the interests of Dover and its authorised representatives by avoiding liability to clients for poor financial advice.
According to local media reports, for each contravention, Dover could face more than A$2m (£1.09m, $1.43m, €1.23m) in fines with McMaster hit with A$500,000.
Dover cancelled its Australian Financial Services Licence in June. Before the firm’s downfall, it was one of the country’s largest non-bank networks and had more than 400 advisers and 50,000 clients.
McMaster reportedly told Australian news corporation Fairfax Media that he intends to counter-sue Asic.
The former advice firm boss made headlines in April after he collapsed while being cross-examined as part of Australia’s Royal Commission in banking, superannuation and advice.
He was wheeled away from court on a gurney by paramedics
