The former chief executive of AFS Group has urged financial planners considering breaking away from the dealer group to halt their plans.
Peter Daly told InvestorDaily that advisers thinking about leaving the group should wait until the AFS board makes a decision as to the future direction of the group.
“I have no knowledge of any breakaway group. I can confirm I haven’t been speaking to any practices about breaking away,” Daly said.
“They shouldn’t do anything rash. They should wait to see what the AFS board does and then make an informed decision.”
InvestorDaily understands that there are a number of AFS advisers, who are not company shareholders, who are close to forming a new dealer group.
It is not yet known how many advisers will make up the new dealer group, or which licensee it will join.
According to the 2011 IFA Dealer Group Survey, AFS has around 85 practices, 186 financial advisers and around $4.8 billion.
Daly was forced out of AFS Group on 21 May after the company’s non-executive directors and Daly failed to agree on the dealer group’s future direction.
Phil Burke has been named as acting chief while the dealer group seeks Daly’s full-time replacement.
Daly is in the process of filing an unfair dismissal case against his former employer.
