Dover Financial, a financial advice firm based in Australia, is set to close its business next month, amid an ongoing investigation by the Australian Securities and Investments Commission (ASIC).
The company, which has been under ASIC’s investigation since last year, will surrender its Australian Financial Service Licence (AFSL) on 6 July 2018.
The move is expected to affect up to 50,000 clients and A$3bn ($2.2bn) of funds under advice, and puts at risk the jobs of over 400 advisers.
The advisory firm recently came under the scanner for its client protection policy. Dover Financial owner Terry McMaster termed the policy as a “misnomer” after being grilled by the banking royal commission on the issue.
Commenting on the decision, McMaster said: “We are aware that this announcement has come very suddenly. We regret this immensely, but there is nothing we can do about it. We are also aware that this email is a somewhat impersonal way for you to hear that your arrangement with Dover must come to an end. Once again, this is beyond our control.
“Unfortunately, it has proven impossible for us to continue in the current environment. This is a cause of immense sadness to us.”