Banking royal commission leads to first conviction — Dover Financial boss Terry McMaster
The Australian Securities and Investments Commission (ASIC) has won its first case arising out of the banking and financial services royal commission.
Failed firm Dover Financial Planning, and its sole director Terry McMaster, were convicted in the Federal Court of false and misleading conduct.
ASIC alleged Dover imposed a misleadingly titled "client protection policy" on its clients, which in fact offered greater protection to the firm itself.
ASIC's case centred on terms contained in the policies which exempted the company from responsibility for "poor financial advice", such as: "You agree to not complain or seek any form of compensation for any loss suffered as a result of being under-insured should an insured event occur."
Mr McMaster memorably ended his evidence to the royal commission abruptly in April 2018, collapsing in the witness box and leaving on an ambulance stretcher.
