Appendix 1 – Why did ASIC not tell Dover it thought the CPP was deceptive?

A disturbing paragraph

These two paragraphs appear in ASIC’s 12 December 2016 Dover Discussion paper:

These are the only ASIC references to Dover’s Client Protection Policy Dover can find.

ASIC determined Dover’s Client Protection Policy was deceptive in 2016.

A disturbing reflection

One recurring disturbing reflection focusses on ASIC’s repeated failures to tell Dover it believed the Client Protection Policy was deceptive. You would have thought ASIC would mention it. But ASIC did not say a thing. Over a two-year period, with dozens of ASIC staff engaged in the Dover surveillance, ASIC did not tell Dover it believed the CPP was deceptive.

Not one word. Not until 22 March 2018, just before the Royal Commission.

Yet ASIC’s 12 December 2016 discussion paper was distributed widely throughout ASIC. It was the basis for extensive meetings between large number of ASIC staff over December 2016 and early 2017. It fed numerous spin-off documents including:

  • Stakeholder Referral to Financial Services Enforcement dated 29 March 2017
  • Dover Financial Advisers Pty Ltd – Memo to Ops dated 31 January 2017
  • Case Study 1 AFS Licensee under surveillance authorizing and termination

representatives ASIC Enforcement Review Position and Consultation Paper 8 ASIC’s Directions Powers dated 8 November 2017 (a paper to Treasury, the Attorney General and the CDPP using Dover as an example of why ASIC needed increased powers).

None of these ASIC papers mention Dover’s CPP.

A disturbing question

Why did ASIC not tell Dover it believed the CPP was deceptive?

The Dover Group