Dover Financial Services will turn in its financial advisory licence at the end of next week, as an Australian Securities and Investment Commission (ASIC) investigation into the company's 'systematic failings' is ongoing.
The financial services company, which was also subject to a Royal Commission grilling earlier this month, accepted an enforceable court undertaking to cease operating its financial service business by July 6 and apply to ASIC to cancel its Australian Financial Services License (AFSL).
The enforceable undertaking has resulted from an ASIC investigation which commenced in 2017 concerning Dover's 'client protection policy'.
The protection policy was reportedly designed so that Dover clients could access "the best possible advice and the maximum protection available under the law".
However, it is ASIC's view that the policy burdened clients with the liability for losses resulting from advice that was negligent, inappropriate or not in a client's best interests.
ASIC is concerned that by intending to rely on the protection policy, Dover had failed "deliberately and systematically" to comply with its obligations to the consumer, comply with financial services laws and take reasonable steps to ensure that its representatives also complied with financial law.
The watchdog has also taken aim at Dover's owner Terry McMaster, adding that McMaster lacks the "organisational competency" required of an AFSL holder.
ASIC is concerned that, in an individual capacity and also in the capacity of a responsible officer of Dover, McMaster "is not of good fame and character" and has "impaired Dover's ability to provide the financial services covered by the AFSL".
During his testimony at the Royal Commission earlier this month, McMaster reportedly collapsed on the witness stand after being accused of lying in response to questions posed by assisting counsel Mark Costello.
The ASIC investigation into Dover is ongoing.