Freedom Insurance Group has confirmed that all authorised representative agreements associated with its advice business, Spectrum Wealth Advisers will be terminated on 30 June.
In an announcement released to the Australian Securities Exchange (ASX) today the company pointed to its continuing exit with both respect to advice and its insurance business.
The company said that Spectrum had supported the orderly transition of a large number of authorised representatives to other licenses.
It said that the transition of administration services with its insurers announced on 29 April had now been completed and resulted in a final settlement consideration of $5 million with this payment being separate to commission and clawback arrangements.
It said that the business would continue to incur costs associated with the wind-down.
The company said it had commenced the cancellation process of its Australian Financial Services Licences for both Freedom Insurance and Spectrum with the Australian Securities and Investments Commission (ASIC).
However, it said that despite the cancellation of the licence there might be continuing obligations imposed by ASIC on one or both companies that would need to be addressed.