Business

Jun 12, 2018

Bye bye, Dover: time to properly license financial planners

The closure of Dover Financial illustrates that only tough regulatory decisions lie ahead for financial planning.

Bernard Keane — Politics editor

Bernard Keane

Politics editor

Terry McMaster

The shutdown of Dover Financial -- which the Australian Securities and Investments Commission (ASIC) would eventually have done but was pre-empted by managing director Terry McMaster (he of the collapse in the witness box at the royal commission) -- has been a long time coming.

McMaster was being questioned about Dover's "Orwellian" client protection policy, which was actually about protecting Dover Financial by cutting adrift any advisers who failed to research products properly, when he collapsed at the royal commission. But he'd also come under fire for threatening complainants with defamation suits and Dover's willingness to take on financial advisers who had previously engaged in misconduct with other licensees.

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3 comments

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3 thoughts on “Bye bye, Dover: time to properly license financial planners

  1. Arky

    “Imagine a hospital shutting down, leaving all the doctors unable to work and uninsured.”

    Your example isn’t great. Yes, some doctors are consultants who are self-employed, obtain their own insurance, and can work at any hospital which will accredit them as well as having their own practice in their own consulting rooms if they wish, but many are employees of the hospital and would be in quite the invidious position if a hospital suddenly closed down (unlikely as it is to happen).

    The idea of financial advisers being licensed through a firm is that the firm is MEANT to be exercising some control over these shonks to avoid risking the firm’s licence. Until now, there has been no real risk and thus many or most firms didn’t exercise much control, but hopefully that will change.

    1. rhwombat

      It is absolutely nothing like a hospital BK. The analogy is as offensive as the rest of the Lawyers, Banksters and Spivs gang. Real (ie non-commercial) hospitals have always existed independently of the financial world (save for the clinical Tradies like orthopods and urologists treating the worried well and inconvenienced): that’s why you cannot cite one example of such a shutdown for your gedankenexperiment. That’s why spivs like McMaster were laughed out of the Emergency Department when they pull stunts like getting the vapours at an RC. Biology has absolutely no regard for economics. Neither do those of us who work within its constraints.

  2. AR

    If a F/P firm collapsed and its thus-enabled bloodsuckers were unable to continue to prey on the hapless it sounds like a fine result – better than anything the toothless watchpoodles could bring out.

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