ASIC cancels Dixon AFSL
The Australian Securities and Investments Commission has cancelled the Australian Financial Services Licence held by Dixon Advisory and Superannuation Services, effective 5 April 2023.
The terms of the cancellation require Dixon Advisory to maintain membership of AFCA until 8 April 2024. This means it will continue to be possible to lodge a complaint with AFCA because Dixon Advisory remains a member until that time.
ASIC previously informed former clients of Dixon Advisory to consider lodging complaints with AFCA to preserve possible eligibility under a potential future Compensation Scheme of Last Resort (CSLR)
The Federal Government has introduced legislation for a CSLR, but the legislation has not yet been passed by the Australian Parliament.
Dixon Advisory complaints remain on ‘pause’ the meantime. Please see more information below.
Complaints received
As at 1 June 2023, AFCA has received more than 1,700 complaints since the August 3 announcement by ASIC advising former clients of Dixon Advisory and Superannuation Services to consider contacting AFCA if they believe they have suffered loss due to misconduct related to financial advice. This takes the total for Dixon to more than 1,800 complaints.
The level of complaints coming into AFCA may mean some delays, but consumers can be assured that by submitting their complaint they preserve any possible eligibility under a potential future compensation scheme of last resort (CSLR).
See details below on how to lodge a complaint. Once a complaint has been registered it will be placed on hold, pending further developments (see ‘Complaints paused’).
For more information, see the ASIC announcement.
ASIC announcement
On 3 August 2022 ASIC announced that it will soon be writing to former clients of Dixon Advisory to inform them that if they believe they have suffered loss as a result of the misconduct of Dixon Advisory and/or their former Dixon Advisory financial adviser in providing financial advice, they should make a complaint to the Australian Financial Complaints Authority (AFCA).
As complaints may only be made against firms who are members of AFCA, complaints against Dixon Advisory should be made as soon as possible to ensure that Dixon Advisory’s AFCA membership is still current and that consumers remain eligible to access a potential future Compensation Scheme of Last Resort (CSLR).
How to lodge a complaint
- online at AFCA’s website
- by phoning AFCA on 1800 931 678
If a former client of Dixon Advisory has already lodged a complaint with AFCA there is no need for them to do anything further at this time.
Complaints paused
In January 2022, AFCA was advised that Dixon Advisory had been placed into Voluntary Administration.
As a result, AFCA paused progress of all complaints against Dixon Advisory.
This is in line with our policy for the handling of complaints involving insolvent firms, including those in Voluntary Administration. While awaiting the introduction of CSLR, these complaints will continue to be paused and will be assessed once any CSLR is established.
AFCA will only be able to fully assess the impact of the CSLR and its relevance to paused complaints once the scheme is legislated. We will review all relevant complaints as soon as that occurs.
Whether or not a former client of Dixon Advisory is eligible for compensation will depend on the individual circumstances of the advice that they were given, as well as the scope and operation of a CSLR.
Additionally, AFCA will also review the pause on complaints against Dixon Advisory when the outcome of the administration process is known as this could also affect clients’ eligibility for compensation.
Membership of AFCA
As of 3 August 2022, Dixon Advisory continues to be a member of AFCA.
New complaints can still be lodged with AFCA against Dixon Advisory. We will register new complaints, but those complaints will also be paused.
Details of administrators
On 19 January 2022 E&P Financial Group Limited made an ASX announcement about the appointment of the Administrators to Dixon.
When a firm enters an insolvency process it is important that any communications or queries about the process are directed to those now responsible for the firm.
In the case of Dixon this is currently the administrators, Stephen Longley and Craig Crosbie of PwC Partners. Their contact details are:
Class actions
AFCA understands that current class actions have been paused by the court. If you have a complaint about Dixon, there may be jurisdictional issues if you are part of a class action in the future. However, in the meantime you can still lodge your complaint with AFCA.
For more information read our factsheet: how AFCA approaches complaints that are part of a class action.
If you are considering winding up your SMSF
If you have a complaint relating to your SMSF before AFCA and are considering winding up the SMSF, AFCA encourages you to seek independent financial and legal advice. Winding up the SMSF may have implications for your complaint, AFCA’s ability to consider your complaint and any potential eligibility you may otherwise have for the proposed CSLR.
Read AFCA’s factsheet about SMSF complaints here
More information
- AFCA’s factsheet which provides information for people with complaints about insolvent firms.
- Information about AFCA’s approach to complaints that may be impacted by a Compensation Scheme of Last Resort
- Announcement from Dixon’s parent company, E&P Financial Group
- PwC's Insolvency Cases page
Previous ASIC announcements
- ASIC has suspended the Australian Financial Services licence of Dixon Advisory with conditions including the maintenance of AFCA membership (see 22-094MR).
- On 4 September 2020 ASIC commenced civil penalty proceedings against Dixon Advisory for alleged conflicts, best interest failures and inappropriate advice (see 20-207MR and 21-167MR). The matter has been relisted for hearing on 2 August 2022.
