An independent dealer group has called for advisers’ fees and commissions to be paid daily, to avoid losses if licensees fail.

Synchron director John Prossor says such earnings should not be held by dealer groups for extended periods.

It follows a recent court case in which Australian Financial Services (AFS) authorised representatives failed to get more than $1 million of fees and commissions released from a trust account.

AFS is in liquidation, and a court ruled against releasing the money.

“We believe money earned by an adviser belongs to the adviser and should therefore be paid without delay,” Mr Prossor said.

“For this reason, Synchron has always paid advisers daily. We don’t hold advisers’ money in a trust account, or any other account, any longer than we can help it.”

Mr Prossor says the AFS case follows a similar incident about 10 years ago when Silvalake Financial Services went into liquidation.