Financial planning group Custom Wealth Solutions has entered receivership, with an SMSF accounting-focused AFSL set to acquire the company’s former advisers and client books.
SMSF Adviser's sister title ifa revealed earlier this week that receivers from BRC Advisory had been appointed to CWS, allegedly following a personal dispute between the company’s directors.
In a bid to extract maximum value from the company, the appointed receivers have reached an agreement with Queensland-based licensee SMSF Partners – a business that describes itself as “by SMSF specialist accountants, for SMSF specialist accountants” on its company website.
The website also describes the firm as “dedicated to delivering cutting-edge advice and education solutions for today's forward-thinking accounting professionals” and supporting authorised representatives looking to build “profitable SMSF advisory firms”.
Speaking to SMSF Adviser, John Morgan of BRC Advisory said SMSF Partners has been appointed by the receiver “to help manage the situation” and provide a licence to CWS’s former advisers.
“We have an obligation to maximise the value of the business and sell the book,” Mr Morgan said.
“We have appointed [SMSF Partners CEO] David Mardell to help us manage the asset.
“The authorised representatives have been looked after by us putting SMSF Partners between the authorised reps and us,” Mr Morgan said. “That protects the authorised reps so they can keep trading and secondly it preserves the value of the asset, so we are just exercising our duty of care.”
Mr Morgan said that CWS’s secured creditors are “happy with SMSF Partners” as a suitable destination for the collapsed group’s advice network and clients.
However, one of the CWS authorised representatives – speaking on condition of anonymity – said he received a phone call from the receiver “telling us they will not grant a release, which effectively means we are compelled to join SMSF Partners”.
“I’ve still got a lot of questions but at this stage I have basically been told I have no choice,” the adviser said.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 26 Sep 2017ATO set to add new items to SMSF watch listBy Katarina Taurian
- 26 Sep 2017ATO tipped to scrutinise property development and unit trustsBy Jotham Lian
- 26 Sep 2017Statistics reveal full impact of events-based reportingBy Staff Reporter
- 26 Sep 2017Tax advice exemption discrepancy driving away accountantsBy Jotham Lian
- 26 Sep 2017Consultant flags strategies to negate complex ECPI calculationsBy Miranda Brownlee
- 25 Sep 2017Survey results point to major concerns with new reportingBy Miranda Brownlee
- view all
- ATO tipped to scrutinise property development and unit trusts
One big four accounting firm says the ATO has started to zoom in on property development in unit trusts being held in SMSFs and the calculat...read more
- Statistics reveal full impact of events-based reporting
Analysis conducted by SMSF software provider BGL Corporate Solutions has indicated that around 290,000 SMSFs will be affected by the events-...read more
- Tax advice exemption discrepancy driving away accountants
A discrepancy in ASIC’s treatment of licensed and unlicensed accountants in relation to the tax advice exemption instrument is driving acc...read more
- view all