Advisers' role 'under investigation' in Dollarforce scheme
A number of advisers allegedly advised clients to take out reverse mortgage loans to invest in a failed Victorian property investment scheme, the assets of which have been frozen by the corporate regulator.
Van Moulis, practice group leader of legal firm Slater and Gordon , which has launched a class action against the Dollarforce Group of Companies on behalf of 80 investors, said some investments could be sourced to advisers.
However, Moulis told Money Management he could not say whether any advisers could be implicated in the pending class action until Slater and Gordon had completed its investigations.
Many investors are understood to have taken out reverse mortgages to finance their investments in Dollarforce, taking out structured loans that they believed would deliver returns of between 10 and 14 per cent.
Dollarforce directors Clestus Weerappah and Andrea Hawkins raised a total of $43 million from investors, $23 million of which the Australian Securities and Investments Commission (ASIC) alleged has not been returned.
ASIC accused the duo of using the money to finance other investors' interest payments or transferring it to other accounts they controlled.
Recommended for you
The shift in scale and consolidation has led to substantial growth in large privately owned licensees, which have tipped past 20 per cent of advisers for the first time to make up 28.3 per cent of the industry.
ETF providers Betashares and BlackRock are reporting increased flows for currency hedged vehicles, but an adviser has warned on the potential tax implications of changing currency.
Bravura chair Matthew Quinn is to step down later this year, following the exit of CEO Andrew Russell, while its future priority is digital advice in Australia.
Financial advice has an important role to play in navigating family discussions around inheritance, according to CFS, with younger generations expecting a windfall of more than $500,000 while older ones try to meet their retirement needs.
