Demise of a dealer group
As independent dealer group Chapel Road awaits the next stage of legislative process in its licence revoke appeal, it seems the group may have already seen the last light of day.
Just four proper authority holders (PAH) remain under the Chapel Road banner, as the group continues to operate under the conditions set by the Australian Securities and Investments Commission (ASIC) when it granted Chapel Road a reprieve of the licence revocation decision.
A source close to the group has also disclosed 19 PAHs departed Chapel Road for Benwest Investment Services, but this number is likely to drop to about a dozen. It is understood the remaining PAHs are heading off to Mawsons, Garrisons, Securitor and Pivotal.
It has been confirmed that Chapel Road general manager Bill Davies has also left the group. Davies began a new employer relationship this week, after several job offers and some holiday time.
The group now waits for the Australian Appeals Tribunal (AAT) review to be held into the May 1st order to revoke the dealer group's licence, which according to ASIC is still at least three months away.
Conditions of the stay granted to Chapel Road about two weeks after the licence revoke meant the dealer group had to advise prospective clients and proper authority holders in writing of the revocation proceedings and the stay. The group also had to provide ASIC with a current client list, contact details of new clients and an approved product list, and were not allowed employ new staff or representatives.
In light of the conditions and diminished PAH numbers, it could be a sign that time is up for Chapel Road. It is also understood that there is an offer on the table for Chapel Road, which should be decided by the end of the month.
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