Former clients of Dixon Advisory & Superannuation Services Pty Limited (currently in administration) may potentially be eligible for compensation under a future Compensation Scheme of Last Resort (CSLR). ASIC is preparing to contact these former clients to advise them on steps they need to take.

ASIC will notify former Dixon Advisory clients that if they believe they suffered financial losses due to misconduct by Dixon Advisory and its advisers, they should lodge a complaint with the Australian Financial Complaints Authority (AFCA). It's crucial to act swiftly, as complaints can only be accepted while Dixon Advisory remains a member of AFCA. Once membership ceases, AFCA cannot process further complaints.

Former clients are advised to monitor their mail, email, and spam folders for correspondence from ASIC.

Clients who have already lodged a complaint with AFCA need not take any further action at this time. However, it's important to note that lodging a complaint does not guarantee compensation due to several factors, including:

• The CSLR has not yet been established, so its final parameters are uncertain.

• Dixon Advisory's voluntary administration status may impact clients' eligibility for compensation.

• Eligibility for compensation depends on individual circumstances of the advice received and the CSLR's eventual scope and operation.

AFCA will accept and register complaints against Dixon Advisory while it remains a member. Processing these complaints will depend on various factors, such as the outcome of the administration process, potential class action lawsuits, and the establishment and scope of the CSLR.

AFCA provides detailed information about Dixon Advisory on their website, where clients can lodge complaints online or call 1800 931 678.

The CSLR was recommended by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. Its aim is to compensate eligible consumers who have received a determination from AFCA that remains unpaid.

Background Information

E&P Financial Group Limited announced the appointment of administrators to Dixon Advisory on January 19, 2022.

ASIC initiated civil penalty proceedings against Dixon Advisory on September 4, 2020, related to conflicts of interest, failures in best interests duties, and inappropriate advice (see ASIC Media releases 20-207MR and 21-167MR for details). A hearing on liability and penalty occurred on the 2nd of August, 2022, with judgment pending.

ASIC has suspended Dixon Advisory's Australian Financial Services licence, with conditions including maintaining AFCA membership (see ASIC media release 22-094MR).

This information comes from the ASIC Media Release (22-205MR) published on the 3rd of August 2022, the information is current at the time of publishing