ASIC suspends Dixon Advisory’s AFS licence
SMSF services provider Dixon Advisory and Superannuation Services Pty Limited has had its AFS licence suspended following the appointment of joint administrators earlier this year.
In January this year, Dixon Advisory and Superannuation Services filed for voluntary administration, with E&P Financial Group Limited announcing that PwC partners Stephen Longley and Craig Crosbie had been appointed as voluntary administrators.
The administrators have informed ASIC that most Dixon Advisory clients have transitioned to alternate financial services providers of their choice, ASIC said in a public statement.
ASIC stated that under the terms of the suspension, Dixon Advisory’s AFS licence will continue to operate until 9 May 2022 so that existing clients who have not yet transitioned to an alternate provider can continue to access financial services.
“The terms of the suspension require the maintenance of dispute resolution arrangements including Australian Financial Complaints Authority membership until 8 April 2023 and require the maintenance of compensation arrangements that comply with s912B of the Corporations Act 2001 until 8 April 2023,” the corporate regulator said.
Under the Corporations Act 2001, ASIC has the power to suspend or cancel an AFS licence without holding a hearing, where the AFS licence is held by a body corporate that is placed under external administration.
Dixon Advisory has a right to seek a review of ASIC’s decision at the Administrative Appeals Tribunal.
In January this year, the Dixon Advisory directors determined the company would likely become insolvent at some future time due to “mounting actual and potential liabilities”, including legal proceedings, claims being determined by the Australian Financial Complaints Authority and regulatory penalties.
In November last year, law firm Piper Alderman filed a class action against Dixon Advisory over allegations the company provided conflicting advice to SMSF clients.
A lawsuit was also filed against Dixon Advisory in October by a couple alleging that the company had provided inappropriate superannuation advice to their SMSF.
In July, Dixon Advisory entered a conditional agreement with ASIC, agreeing to pay $7.2 million to resolve civil penalty proceedings. The proceedings commenced by ASIC related to allegations that Dixon Advisory representatives failed to act in their clients’ best interests to provide financial advice appropriate to the clients’ circumstances.
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
