AFS ills spread to related advisory group
The Salisbury Group (TSG), a planning business with 50 planners, has gone into administration following the recent closure of Australian Financial Services (AFS).
AFS provided TSG with accounting, compliance, secretarial services, regional management and professional indemnity (PI) insurance, but withdrew these services prior to AFS entering voluntary administration in late April.
Company records accessed via the Australian Securities and Investments Commission indicate that TSG is under administration; however Australian Financial Services Licence (AFSL) records state that TSG still holds a current AFSL.
AFS PI insurance expired on 30 April and its AFSL was cancelled a few days later. Prior to this AFS had written to TSG advisers informing them that AFS would not be able to provide PI cover beyond 30 April . AFS urged past and present TSG advisers to seek their own PI insurance cover or to take up a separate PI insurance arrangement through AFS’ existing insurer.
TSG company officers were contacted for this story but had yet to return calls at time of writing.
AUTHOR
Jason Spits
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
