Contact AFCA now: ASIC urges Dixon Advisory clientsBY JAMIE WILLIAMSON | THURSDAY, 4 AUG 2022 11:57AM
Read more: Dixon Advisory, ASIC, AFCA, Australian Financial Complaints Authority, Superannuation Services, Administrators, AFSL, Compensation Scheme of Last Resort
Former clients of Dixon Advisory and Superannuation Services have been told to get in quick with their complaints to the Australian Financial Complaints Authority to ensure they're eligible for compensation.
ASIC plans to write to former clients of Dixon Advisory to let them know that they must lodge a formal complaint with AFCA if they believe they have suffered a loss as a result of the firm's misconduct. They must also do it before Dixon Advisory's membership with the complaints body lapses in April 2023; once this occurs, no further complaints can be accepted.
Administrators were appointed to Dixon Advisory on January 19, close to two years after ASIC launched civil penalty proceedings against the group for alleged conflicts, best interest failures, and inappropriate advice. A hearing on liability and penalty took place this week, with judgment reserved.
ASIC suspended Dixon Advisory's AFSL in April but required it to maintain its AFCA membership for another year.
While lodging a complaint does not guarantee a compensation outcome, by doing so former clients preserve their possible eligibility for remediation under the proposed Compensation Scheme of Last Resort, ASIC said.
ASIC also noted that eligibility for compensation also rests on the individual circumstances of the advice provided, the final scope and operation of the CSLR, and the outcome of Dixon Advisory's ongoing administration process.
Many of these same factors will also influence what action AFCA takes thereafter, which is also dependent on any class action litigation.
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