The board of Australian Financial Services (AFS) Group felt departing chief executive Peter Daly did not have the skills to take the dealer group any further and decided new blood was required.
While AFS chairman Barry Stephen told PPO that the board had not taken the decision lightly, he confirmed that its members had lost faith in Daly’s ability to lead the company.
He denied that the board had been pressured into the decision by AFS shareholders.
Asked if things had changed dramatically since a meeting on May 8 to discuss both budget and future direction, Stephen replied: “In one sense, yes, and in one sense, no. The budget has remained the same.”
Earlier the AFS board had issued a statement thanking and acknowledging Daly’s contribution to the dealer group and wishing him every success in his future endeavours.
Director Phil Burke will be the dealer group’s acting CEO until an appointment is confirmed.
Stephen said the process of appointing a new CEO would begin in the latter half of June but he would not be drawn on a timeframe for securing a permanent replacement.
“It will depend on the quality of the candidates available,” he said. “Until then it is business at usual.”
In November last year ASIC imposed additional licence conditions on AFS following a six-month surveillance operation.
At the time a spokesperson for the regulator said the review process, including the implementation of recommendations, would be ongoing over the next 13 months.
There’s good reason no-one was interested in buying AFS. Not only were there too many skeletons in the closet, but this old boys club has got hugely inflated ideals of what they’re worth. Wake up shareholders and clear out the board!