ASIC yesterday announced that Custom Wealth Solutions Dealer Services (CWS) has received a three-month suspension after being placed in receivership in June, meaning its authorised representatives “are unable to unable to provide financial services to clients under the Custom Wealth licence and will need to seek alternative arrangements to continue providing financial services”, according to the statement.
However, a letter from appointed receivers and manager Geoff Davis of BCR Advisory to former CWS authorised representatives dated 7 July – seen by InvestorDaily – indicates that a vast majority of CWS’s 60-plus authorised financial advisers will be moved en masse to a new licensee, SMSF Partners, also trading as MyPlanner Australia.
“By agreement entered into today, SMSF Partners Pty Ltd has acquired the right to bring the CWS dealers under its AFS licence,” Mr Davis wrote. “Amongst other things, this transfers you to the SMSF Partners insurance, support and training services and the like”.
In addition, the letter states that “ASIC has worked with both SMSF Partners and ourselves to enable the business to be conducted through the period, thereby minimising disruption to authorised representatives and their clients”.
One former authorised representative – speaking to InvestorDaily on condition of anonymity – said the deal reflected a “gun to the head” scenario, lamenting that the receivers had made clear that he “has no choice by to join SMSF Partners”, claiming the existence of a non-release clause.
Former CWS director Chris Appleyard, who also heads up private equity firm Appleyard Capital and SMSF administration service CleverSuper, told InvestorDaily sister title ifa in June that the receivership was the result of a personal dispute between the company’s managers.
“This is not the result of any complaints received or allegations of inappropriate advice,” Mr Appleyard said. “I am co-operating fully with ASIC and complying with all of the set policies and procedures.”
Mr Appleyard also said that CleverSuper – which had previously been authorised under the CWS Dealer Services' licence – has been de-authorised and is currently operating independently of the collapsed entity.
“CleverSuper is an entirely separate corporate structure,” Mr Appleyard said. “I have a mandate to innovate in [the SMSF and superannuation] space, whether under this brand or another.”
SMSF Partners/MyPlanner Australia has not responded to numerous requests for comment.
