The man who collapsed in the witness stand at the banking royal commission and was carted away by an ambulance has been found to have misled and deceived thousands of clients of his financial services group Dover Financial.
In the first judgment coming from a case study at the banking royal commission, Dover Financial and its boss Terry McMaster will now face large fines after being found by Justice Michael O’Bryan to have breached the Corporations Act over Dover’s client protection policy 19,402 times.
The Australian Securities and Investments Commission (ASIC) launched civil penalty proceedings against Mr McMaster following the banking royal commission, alleging Dover’s client protection policy did not protect clients and instead removed all of their rights. ASIC also alleges Mr McMaster was knowingly concerned in the conduct of Dover in relation to the client protection policy.
In handing down his judgment on Friday, Justice O’Bryan said both Dover and Mr McMaster had breached the Corporations Act through the issuance of the client protection policy.