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Accountants licensed to provide advice by the soon-to-be-defunct Dover Group continue to experience fallout from the shock closure, as a major bank moves to suspend their authority.
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Headaches continue for Dover accountants
20 June 2018
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9 minute read
Last week, Accountants Daily reported that Dover Financial Advisers will be unexpectedly wound up, leaving almost 400 authorised representatives urgently seeking new licensing arrangements, including a number of accountants.
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Now Dover authorised representatives have been dealt another blow with the revelation that subsidiaries of the Commonwealth Bank have moved to restrict access to investment and technology products in use by their clients.
Accountants Daily sister title ifa has published the contents of leaked emails suggesting that CBA businesses CommSec Adviser Services and Colonial First State have blocked Dover representatives.
“Following the recent announcement regarding Dover Financial Advisers Pty Ltd (Dover) … ceasing to provide financial services, we will no longer accept instructions on your behalf from anyone employed or previously employed by Dover,” said a communication from CommSec to Dover authorised representatives.
“Effective immediately: we will be removing your adviser's authority to transact and/or trade on your account/s; [and] instructions received such as transactions and/or trades, will only be actioned if they have been authorised by you (the account holder/s).”
The emails also indicate that the bank’s wealth management arm, Colonial First State, intends to suspend existing fees and commissions owed to Dover representatives.
The changes come despite the Dover licence cancellation not coming into effect until 6 July.
However, a number of CBA competitors have announced they will honour their current agreements with Dover advisers and clients and will continue to provide services until the formal cancellation.
Industry super fund AustralianSuper, investment platform Netwealth and Westpac subsidiary BT Financial Group have all committed to continue engaging with Dover representatives until at least 6 July, according to Accountants Daily sister title InvestorDaily.
Dover counts a number of accounting and SMSF specialist firms within its network including McMasters Accountants and Advisers, of which Dover director Terry McMaster is also a director.
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