Banking royal commission: witness collapses after accusation of lying
The head of a financial advice firm has collapsed in the stand at the banking royal commission after being accused of lying.
Dover Financial Services sole owner Terry McMaster had been giving evidence to the commission for more than two hours when he began to experience problems.
Commissioner Kenneth Hayne QC immediately demanded he receive help and triple-zero be called before clearing the hearing room.
Paramedics assessed McMaster in the Melbourne court room before taking him away on a stretcher to a waiting ambulance.
The dramatic development came after counsel assisting the commission Mark Costello accused McMaster of lying during the hearing on Thursday. Costello had asked a series of questions about Dover’s customer protection policy.
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“I put it to you it is Orwellian to describe this as a client protection policy,” Costello said.
McMaster, one of the three responsible managers of Dover, said: “I agree with that and of course this has been changed.”
Costello: “It is entirely misleading to describe this as a client protection policy.”
McMaster: “It actually wasn’t intended to be misleading. It sort of evolved.”
Costello went on to ask what protection the policy gave the client. McMaster said: “I agree with that. It’s a misnomer.”
He then said there were other aspects of the document that were very much in favour of the client.
Costello said: “I’m going to put to you that the way you have just described the policy is simply untrue.” McMaster said he rejected that. “In that rejection, I’ve certainly understood and regretted the use of the word ‘protection’. That’s obviously been changed.”
Costello was asking further questions when he noticed McMaster was in difficulty and asked for the hearing to be stopped.
Earlier on Thursday, the inquiry heard the Financial Planning Association (FPA) did not want a complaint against a celebrity “financial guru” raised at the royal commission, partly because it could damage his reputation.
But the inquiry went ahead and publicly grilled financial planner Sam Henderson about advice that would have cost a Fair Work commissioner $500,000 in superannuation.The commission has heard Henderson – who makes regular media appearances, asked the Financial Planning Association to keep Donna McKenna’s complaint confidential because of his media presence.
The FPA agreed not to publish his name but its conduct review commission rejected the proposed sanctions and suggested Henderson be banned from any media appearances for a year.The March 2017 complaint and subsequent disciplinary process have not been finalised.The FPA’s head of professionalism wrote to the royal commission asking it not to publicise the ongoing matter as it could undermine the conduct review commission process, the inquiry heard on Thursday.“The FPA asks that the matter be treated confidentially as any publication by the royal commission identifying Mr Henderson would render the CRC process worthless to Mr Henderson and cause significant damage to the reputation of Mr Henderson, undermine the process of the CRC and damage the FPA’s relationship with other members.”The FPA chief executive, Dante De Gori, said the concern was Henderson would not participate in the process if he was identified.FPA members expected their details and a complaint to remain confidential until it had been concluded, De Gori told the royal commission.