Former clients of Dixon Advisory and Superannuation Services Pty Ltd have been advised to make a complaint as soon as possible to the Australian Financial Complaints Authority (AFCA) to ensure they may be eligible for possible compensation in the future.
In a website update, the Australian Securities and Investments Commission (ASIC) said it will soon write to former Dixon Advisory clients to inform them a complaint can be made to AFCA if a loss has occurred and it may make them eligible for recompense if a compensation scheme of last resort (CSLR) is established.
“If [previous clients] believe they have suffered loss as a result of the misconduct of Dixon Advisory and/or their former Dixon Advisory financial adviser in providing financial advice, they should make a complaint to the Australian Financial Complaints Authority,” the corporate watchdog said.
“As complaints may only be made against firms who are members of AFCA, complaints against Dixon Advisory should be made as soon as possible. If Dixon Advisory’s AFCA membership ceases, 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. However, even if a complaint is lodged with AFCA, a compensation outcome is not guaranteed.”
Eligibility for compensation will be dependent on the CSLR’s parameters, which are uncertain as a scheme has not been established yet, the outcome of the voluntary administration process for Dixon Advisory and the individual circumstances of the advice given to clients.
If a complaint with AFCA has already been made, then no further steps currently apply.
ASIC’s recommendation follows its suspension of the Australian financial services licence of Dixon Advisory in early May and an investigation into the transfer of its previous clients to a related party.
