The clients of some former Dover financial planners received letters from major platform provider Colonial First State informing them that their advisers could no longer access the platform as of tomorrow unless they had found a new licensee.
The letters, carrying the signature of Colonial First State general manager, client operations, Scott Henricks, pointed out the post-July 6th status of the Dover advisers in the wake of the licensee’s decision to suspend the Australian Financial Services License (AFSL).
The letter pointed out that advisers would no longer be able to provide new advice under the Dover AFSL after 6 July and went on to state “we also understand that your advise is not authorised by Dover to provide you with new advice after 8 June 2018, and so your adviser is unable to advice you after 8 June unless they have been authorised by another AFSL”.
“However, we understand from Dover that between 8 June and 6 July 2018 your adviser can:
- Where a valid Adviser Online Transaction Authority is in place, transact on your behalf to implement advice provided to you prior to 8 June 2018; and
- Assist in processing transactions with your direct written instructions.
Where you have an Adviser Online Transaction Authority in place and would like us to remove your advisers authority to transact before 6 July 2018, please contact us immediately.”
The CFS letter also pointed out that all fees the client had previously agreed with their adviser would continue to be deducted from their account but added: “Should you not agree to these fees continuing to be deducted, or where you otherwise believe you are not receiving services from your adviser as a result of the restrictions outlined above, please contact us immediately to discuss your current fee arrangements.”
The CFS letter said that the Dover adviser might seek to become authorised by a new AFSL, but if this did not occur by 7 July, “your adviser will be removed from your account and will no longer be able to view, obtain information or transact on your account”.