ASIC suspends AFS licence of Dixon Advisory
ASIC has suspended the Australian Financial Services (AFS) licence of Dixon Advisory & Superannuation Services Pty Limited (Dixon Advisory) following the appointment of Stephen Graham Longley and Craig David Crosbie as joint administrators on January 19, 2022.
The suspension terms
Allow Dixon Advisory’s AFS licence to remain operational until May 9, 2022, to facilitate continued access to financial services for existing clients who have not yet transitioned to another provider.
Mandates the maintenance of membership with the Australian Financial Complaints Authority (AFCA), until the 8th of April 2023.
Requirers compensation arrangements compliant with section 912B of the Corporations Act 2001 to be upheld until the same date (08/04/2023).
Under the Corporations Act 2001, ASIC has the authority to suspend or cancel an AFS licence without a hearing when the licence holder undergoes external administration, as is the case with Dixon Advisory.
Dixon Advisory retains the right to challenge ASIC’s decision through a review at the Administrative Appeals Tribunal. ASIC is also conducting inquiries into the transition of former Dixon Advisory clients to Evans & Partners Pty Ltd, a related entity.
Background Information
E&P Financial Group Limited announced the appointment of administrators to Dixon Advisory on January 19, 2022.
ASIC’s civil penalty proceedings against Dixon Advisory,0that were initiated on September 4, 2020, for alleged conflicts, failures in best interests duties, and inappropriate advice, are currently stayed.
ASIC continues to collaborate with the Administrators to progress these proceedings.
Update
ASIC subsequently cancelled Dixon Advisory’s AFS licence, effective April 5, 2023. The cancellation terms require Dixon Advisory to maintain membership with the Australian Financial Complaints Authority until April 8, 2024.
Former clients of Dixon Advisory were advised by ASIC to consider lodging complaints with AFCA to potentially secure eligibility under a future Compensation Scheme of Last Resort (refer to ASIC Media Release 22-205MR from the 3rd of August 2022).
Information and Updates are taken from ASICs Media Release (22-094MR) and are true at the time of publishing.