The corporate regulator wants the Federal Court to declare that a Melbourne financial advice company broke the law, and is seeking financial penalties.
ASIC has begun civil penalty action against Dover Financial Advisers and its sole director, Terry McMaster, who memorably collapsed in the witness box at the banking royal commission in April after more than two hours of questioning.
It alleges the Melbourne-based company, with more than 400 representatives Australia-wide, allegedly misled and deceived clients from September 2015 to March 2018.
ASIC alleges the deception came when the company began using its client protection policy, which contained false and misleading information about clients' rights and protections.
It will also argue that move sought to protect the interests of Dover and its authorised representatives by avoiding liability to clients for poor financial advice.
ASIC has lodged the action in the Federal Court in Melbourne, seeking declarations Dover and Mr McMaster breached financial services law and pecuniary penalties against both for the contraventions.
ASIC's enforcement action has to date led to Dover's financial services licence being cancelled and Mr McMaster's permanent exit from the industry.
Australian Associated Press
