A witness has collapsed at the banking royal commission

Terry McMaster of Dover. Image: Screenshot from webcast.

Terry McMaster, the head of Dover Financial, collapsed at the financial services royal commission when under intensive questioning.

Royal Commissioner Kenneth Hayne stopped proceedings so an ambulance could be called.

McMaster was being questioned by Mark Costello, counsel assisting the commission, about the financial planning firm’s liability statements in client contracts.

The Corporations Act holds licensees liable for actions of their authorised representatives, but Dover Financial’s contracts makes exclusions under the guise of a “client protection policy”.

Costello said: “It is Orwellian to describe this as a client protection policy.”

McMaster agreed.

Costello put to McMaster that the culture within Dover was that “client complaints are to be fought at all costs”.

McMaster: “I don’t think that’s correct.”

The royal commission webcast of proceedings was suddenly cut.

The commission has heard of financial planners coming from other firms who were under a cloud when they joined Dover.

One adviser, Adam Palmer, was being investigated by AMP when he successfully applied to Dover.

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