In a further development in the Dover licensee saga, on Monday, ASIC filed a lawsuit accusing Dover of "misleading and deceptive conduct," when it forced it's clients to sign up to it's client protection policy – which had been described as “Orwellian”. 
The lawsuit targets Dover and its sole Director – Terry McMaster, who famously collapsed after being accused of lying, by Counsel Assisting the Commission Mark Costello, at previous Royal Commission hearings in April. Three months after his collapse at the Commission, Dover itself collapsed (after ASIC cancelled its Financial Services License).
The regulator has had Dover under investigation since last year, well before it's owner, Terry McMaster’s sensational appearance (then disappearance) at the Royal Commission. When questioned at the Commission about Dover's “client protection policy,” McMaster conceded this policy was a "misnomer," particularly since it offered more legal protection to the firm than it's customers.
ASIC is seeking civil penalties against both the company, and it's director, in the Federal Court, alleging that Dover breached the Corporations Act and ASIC Act, because it’s policy was "designed to burden clients with the potential liability for losses resulting from advice that was negligent, inappropriate or not in a client's best interests". ASIC also raised concerns the policy had information about the clients' rights that were "false and misleading", it created a "significant imbalance" in favour of Dover and its agents, and it contained terms in which Dover and its representatives took no responsibility for "poor financial advice".
The action could see Dover fined more than $2 million for each contravention while Mr McMaster could be hit with fines of nearly $500,000 for each contravention.
In a statement to Fairfax Media late yesterday, McMaster said that he would counter-sue ASIC and was "looking forward to seeing ASIC force the bank AFSLs and the AMP AFSLs to close too". In the statement, McMaster also criticised ASIC for its "misconceived" thinking that Dover's "commission refund scheme" was actually a "highly illegal, even criminal" early super access scheme, and described earlier press releases by ASIC about Dover's alleged misconduct as “nasty and misleading”.
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Comments5
"I was a victim of McMaster Pty Ltd. They ripped off me and many other people in the name of Tax and superannuation advice. They charged me $2200.00. just to filled up few pages with cut and paste of some rubbish advice. McMaster Pty Ltd should be punished severely with jail and heavy penalty so that no other organisation can't dare to rip off people in Australia. "
A Victim 14:39 on 22 May 19
"They need to be seen to be doing something amongst all the noise out there at the moment....have they taken any action to confirm if any client has been adversely affected due to application of this policy?"
RGP 16:58 on 18 Sep 18
"Victimless crime."
Reuben Zelwer 15:57 on 18 Sep 18
"Hear Hear So the banks get slapped with a lettuce leaf and Dover gets punished.... should be a level playing field in the event of any alleged misdemeanour."
Not fair 15:57 on 18 Sep 18
"While I do not agree with Dover Actions, how can ASIC on 1 hand be banning and suing 1 licensee for certain activities and chasing the director, when bank directors and senior staff members get no action taken against them... "
David Orth 15:53 on 18 Sep 18