ASIC now has former financial planner Terry McMaster in court

Terry McMaster of Dover. Image: Screenshot from webcast.
  • Terry McMaster and Dover Financial in court accused of making false and misleading representations.
  • Dover’s financial services licence was previously cancelled.
  • McMaster in April collapsed at the financial services royal commission during intensive questioning.

Terry McMaster, the head of Dover Financial who collapsed at the financial services royal commission when under intensive questioning, now faces court action accused of making false and misleading representations.

Corporate regulator ASIC launched civil penalty action in the Federal Court of Australia, Melbourne, against Dover Financial Advisers and its sole director, McMaster.

McMaster has previously given a court undertaking to remove himself permanently from the financial services industry.

Dover’s financial services licence has been cancelled.

Now ASIC alleges that Dover misled and deceived clients when they started using the firm’s Client Protection Policy.

The regulator says the policy contained false and misleading representations as to the rights and protections available to clients and sought to protect the interests of Dover by avoiding liability for poor financial advice.

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

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

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”.

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