The Dixon Advisory Situation
The Information so far.
If you have a complaint registered with AFCA regarding Dixons Advisory that has been initiated but not finalised we recommend beginning the process of compiling the evidence of your claim if you haven’t already.
If you need any assistance with the compilation and presentation of your evidence for your claim please reach out, we are happy to help however we can.
The Timeline
04/08/2015 - Dixon Advisory Group pay infringement notice for potentially misleading advertisements
Dixon Advisory Group Ltd has paid two ASIC infringement notices totalling $20,400, after posting potentially misleading claims on its website.
Dixon Advisory's website included information on the benefits of self-managed super funds (SMSFs). Here SMSF costs and performance were compared to industry and retail superannuation funds.
The website also included a video the made claims related to an independent review of the superannuation system.
Dixon Advisory has removed the statements and video from its website and related social media profiles, and has fully cooperated in responding to ASIC's concerns.
— 04/08/2015 as per ASIC Media Release 15-207MR
04/09/2020 - ASIC commence civil penalty proceedings against Dixon Advisory for alleged best interest failures and inappropriate advice
ASIC commenced proceedings in the Federal Court of Australia against Dixon Advisory and Superannuation Services Limited.
It is alleged that Dixon Advisory representatives failed to act in clients’ best interests and failed to provide advice that was appropriate to client circumstances.
Additionally ASIC alleges that, in giving this advice, Dixon Advisory representatives knew or ought to have known that there was a conflict between their clients’ interests and the interests of entities associated with Dixon Advisory. As well as in knowing that this conflict existed still failed to give priority to their clients’ interests..
ASIC also alleged that 51 separate instances of financial advice were provided to eight sample clients, each of which resulted in two or more contraventions of advisers best interests duties.
— 04/09/2020 as per ASIC Media Release 20-207MR
09/07/2021 - ASIC and Dixon Advisory enter a conditional agreement to resolve civil penalty action
ASIC and Dixon Advisory & Superannuation Services Limited have, as of July 8th, entered into a heads of agreement to resolve civil penalty proceedings commenced by ASIC in the Federal Court in September of 2020.
The proceedings relate to best interests duties under the Corporations Act, with allegations that Dixon Advisory representatives failed to act in the best interests of clients and failed to provide financial advice appropriate to client circumstances.
The heads of agreement propose that Dixon Advisory pay a $7.2 million penalty for breach of the Corporations Act. As well as paying for ASICs costs of investigation and the legal proceedings. The in-principle resolution between the two parties is subject to approval from the Court.
— 09/07/2021 as per ASIC Media Release 21-167MR
19/04/2022 - ASIC has suspended the Australian Financial Services licence of Dixon Advisory
ASIC has suspended the AFS licence of Dixon Advisory. The suspension follows the appointment of Stephen Longley and Craig Crosbie as joint administrators to Dixon Advisory on the 19th of January 2022.
The terms of the suspension:
allow Dixons AFS licence to operate until the 9th of May 2022 so clients who have not yet transitioned to an alternate provider can continue to access financial services.
require maintenance of dispute resolution arrangements including Australian Financial Complaints Authority (AFCA) membership until April the 8th 2023.
require the maintenance of compensation arrangements that comply with the Corporations Act 2001 until the 8th of April 2023.
ASIC is also undertaking inquiries in relation to the transition of former clients of Dixon Advisory to Evans & Partners Pty Ltd, a related entity.
— 19/04/2022 as per ASIC Media Release 22-094MR
03/08/2022 - ASIC advises Former Dixon Advisory clients should consider lodging complaints with AFCA
Former clients of Dixon Advisory may be eligible for compensation under a potential future Compensation Scheme of Last Resort (CSLR) but they will need to take action as soon as possible.
As complaints may only be made against members of AFCA, complaints against Dixon Advisory should be made ASAP. If Dixon Advisory’s AFCA membership ends then no further complaints can be accepted.
Lodging a complaint with AFCA is a necessary step for clients to preserve their possible eligibility under a potential future CSLR.
AFCA will accept and register complaints lodged against Dixon Advisory while it remains a member. AFCA will then pause further handling of these complaints. Whether the complaints can be progressed will depend upon a number of factors, including the outcome of the administration process, potential class action litigation, as well as whether a CSLR is established and what its scope may be.
— 03/08/2022 as per ASIC Media Release 22-205MR
19/09/2022 - Dixon Advisory has been penalised $7.2 million for breaches of their best interest obligations
The Federal Court has imposed a $7.2 million penalty on Dixon Advisory after their representatives were found to have failed to act in clients’ best interests, and to have failed to provide advice appropriate to clients’ circumstances.
The Court found that on 53 occasions between October of 2015 and May of 2019, Dixon Advisory was the responsible licensee of representatives who did not act in the best interests of clients when they advised clients to acquire, roll-over, or retain interests in the US Masters Residential Property Fund (URF) and URF-related products.
The Court found Dixon Advisory representatives did not conduct reasonable investigation of clients’ circumstances before providing the advice. In some cases, this inappropriate advice resulted in the client’s SMSF being insufficiently diversified and exposed to risk of capital loss.
The Court also ordered that if Dixon Advisory, currently in voluntary administration, resumes providing financial services, Dixon Advisory must have in place appropriate systems, policies and procedures to ensure its representatives act in the best interests of clients.
— 19/09/2022 as per ASIC Media Release 22-256MR
04/08/2023 - ASIC sues Dixon Advisory & Superannuation Services Pty Limited director
ASIC has commenced civil penalty proceedings in the Federal Court against Mr Paul Ryan, director of Dixon Advisory, for alleged breaches of directors’ duties.
ASIC alleges that Mr Ryan breached his duties as director by his involvement in decisions that are alleged to have been to the advantage of Dixon Advisory’s holding company, E&P Operations Pty Ltd. While also being to the detriment of Dixon Advisory’s creditors. It is important to note that Mr Ryan was also a director of E&P Operations.
ASIC alleges that Mr Ryan was involved in:
amending the constitution of Dixon Advisory in December of 2021 to authorise its directors to act in the interest of E&P Operations.
executing a deed of acknowledgement of debt on the 24th of December 2021 between Dixon and E&P, to the advantage of E&P Operations and to the detriment of Dixon Advisory.
ASIC further alleges that at the time the Deed was entered:
E&P Operations owed Dixon Advisory over $19 million.
Dixon Advisory was approaching insolvency and therefore its directors were obligated to consider the interests of creditors.
the Deed imposed conditions which adversely affected Dixon Advisory’s right to recover this $19 million debt.
— 04/08/2023 as per ASIC Media Release 23-208MR
Other Information Since Then
January 2022 - April 2024 - Processing of AFCA Complaints paused regarding Dixon Advisory
In January of 2022 Dixon Advisory was placed into Voluntary Administration. As a result, progress of all AFCA complaints against Dixon Advisory were paused, pending the establishment of the Compensation Scheme of Last Resort (CSLR). The CSLR was established on the 2nd of April 2024, and complaints processing has resumed.
30th of June 2024 - Dixon Advisory was officially expelled from AFCA
No further complaints can be submitted to AFCA after the expulsion. Complaints can only be filed against current members. All complaints received prior to the expulsion remain valid and will be considered and finalised as normal.
Ongoing - All complaints received on, or prior to, 29/06/2024 are being processed
To date AFCA has received a monumental 2,773 complaints against Dixon Advisory since its inception in 2018. These are still being processed now that the CSLR has been established.
If you have a Dixons Complaint registered with AFCA and you would like assistance with the compilation and presentation of your claim please reach out, we are happy to help however we can.