The Financial Advice Association Australia (FAAA) has called on the government to urgently progress the Compensation Scheme of Last Resort (CSLR)/Dixon Advisory Senate Economics Committee inquiry.
To this end, the financial planning body has requested the committee chair and deputy chair to begin to call witnesses.
It noted this step was still yet to be taken despite the fact submissions to the committee regarding this inquiry had been closed for three weeks.
According to the FAAA, the recent announcement of the CSLR levy financial advisers will have to pay for the 2026 income year and Minister for Financial Services Stephen Jones’ subsequent commitment to review the scheme mean more haste must be applied to the work of the Senate Economic Committee regarding the Dixon Advisory collapse.
“The case had been made for the critical importance of this inquiry and stakeholders have provided multiple submissions. There is much that still needs to be investigated. Senators Bragg and Walsh should call witnesses for this inquiry immediately,” FAAA chief executive Sarah Abood said.
“We have continued to unearth problems not only at Dixon Advisory, but also at other firms where a variety of problems have arisen.”
Further, Abood pointed out the sentiment financial advisers are expressing in response to all of the recent developments and announcements.
“Advisers are rightly angry that it now appears as though there is a continued effort to not delve into these issues and to avoid a genuine investigation of where this has all gone wrong. It is particularly critical to progress with this investigation now in light of the estimates that the financial advice profession could end up paying an additional $50 million for CSLR next financial year, on top of the $20 million sector cap,” she explained.
She reiterated the FAAA has continued to demand the government fix the problems with the CSLR already highlighted by a significant number of sector stakeholders.
“If anyone is in any doubt that there are problems with the way that the CSLR has been designed and the potential implications emanating from not just Dixon Advisory but other firms, then they need only to read the submissions that have already been made,” she said.
“Much of the work to determine the problems with the CSLR has already been done and it must not go to waste.”
