Dover Financial, one of Australia’s largest financial advice firms, will shut down its business by early July, the company announced this morning.
The troubled firm, which is the subject of an ongoing investigation by the Australian Securities and Investments Commission (ASIC), will leave some 30,000 clients and $3bn of funds under advice, in limbo. The company’s closure will also see around 400 advisers lose their jobs.
The closure was announced by the company’s owner, Terry McMaster, in an email sent to the company’s network of financial planners on 8 June.
McMaster, who collapsed during questioning in April, apologised for the short notice of the announcement. He confirmed by email that ASIC was imminently to withdraw Dover Financial’s licence, and that he had ordered the firm’s staff to cease offering financial advice with immediate effect.
‘Outside our control’
“Various aspects of the agreement, including the time of year and the speed of the closure, were entirely outside of our control,” McMaster said McMaster.
“We are aware that this announcement has come very suddenly. We regret this immensely, but there is nothing we can do about it. We are also aware that this email is a somewhat impersonal way for you to hear that your arrangement with Dover must come to an end. Once again, this is beyond our control.
“Unfortunately, it has proven impossible for us to continue in the current environment. This is a cause of immense sadness to us,” McMaster said.