Overstepping the boundary

Dover’s AFSL sets out the areas in which we are able to provide advice. These are:

    • Deposit and Payment Products
      • Deposit and Payment Products – Non-basic Deposit Products
    • Government Debentures, Stocks or Bonds
      • Government Debentures, Stocks or Bonds
    • Life Products
      • Investment Life Insurance Products
      • Life Risk Insurance Products
    • Managed Investment Schemes
      • Managed Investment Schemes, including IDPS
    • Retirement Savings Account Products
      • Retirement Savings Account Products
    • Securities
      • Securities
    • Superannuation
      • Superannuation – All

From time to time, we come across an SOA that has recommended something that is not on the above list. Common examples might be foreign exchange or derivatives. These types of product are simply beyond the scope of our licence and thus they cannot be recommended by any of our reps. Any recommendations to deal in these type of product are unlicensed. They are therefore beyond the scope of the contract between Dover and its advisers and are also beyond the scope of our professional indemnity policy.

Dover’s review process obviously picks up on these recommendations that go beyond the scope of our licence. These advice do not make it the client. But this review process still takes time and can tend to be a bit embarrassing for the adviser involved.

The Dover Group