Wealthsure has confirmed that it voluntarily entered into an enforceable undertaking with ASIC, appointing a new managing director to take the company forward.
Wealthsure has struggled to meet its AFSL obligations and ASIC was concerned that issues remained unresolved, despite several meetings with the management of Wealthsure. The company and its director offered ASIC an enforceable undertaking, which was accepted by the regulator.
Wealthsure appointed specialist compliance and risk management firm Pathway Licensee Services to assist them in the development of a remediation plan.
Former state manager with AMP, David Newman, was appointed as a consultant to assist the group in its proposal to ASIC. Newman has now been appointed as managing director. He said that working as a consultant with the group gave him the opportunity to examine the business in detail and fully understand the concerns of ASIC before his appointment.
“The business has got scale, it has a lot of high quality advisers, it has no debt, is profitable and the future for the Group is very exciting. We will be working diligently and passionately on behalf of our network to provide them with services and solutions that will help them build great advice practices.
“We have already developed an Adviser Academy with the help of some very well respected professional services firms within the industry and we are looking forward to launching that to our network in the coming weeks.”
Around 100 representatives have already been terminated, but Newman says much of that was about addressing a long tail within the business. Wealthsure’s adviser numbers currently exceed 230, allowing it to retain its position as one of the largest non-aligned dealer groups.
Wealthsure will be updating its adviser network at upcoming PD days to be held over the next week and will also be conducting briefing sessions for key partners and other industry participants and stakeholders over coming weeks.
AIOFP chief executive Peter Johnston has retaliated at media treatment of Wealthsure's former director Darren Pawski, and defended the business.
“After all the trauma FOFA has put the independents through over the past five years all we ask is that the media get it right,” said Johnston. “Wealthsure is a strong, well-managed business that had a few bad adviser apples – like most others, they are now gone. DP has now voluntarily left the running of the business to the very capable David Newman.”
Johnston was concerned that some news sites stated that Pawski was banned, when he had voluntarily stepped down.