Former clients of Dixon Advisory and Superannuation Services (DASS) have been urged to make a complaint as they may be eligible for compensation under a potential Compensation Scheme of Last Resort.
The Australian Securities and Investments Commission (ASIC) said clients should make a complaint to the Australian Financial Complaints Authority (AFCA) if they believed they had suffered a loss as a result of Dixon Advisory misconduct or their former Dixon Advisory adviser in providing financial advice.
ASIC commenced civil penalty proceedings against Dixon Advisory in September 2020 for alleged conflicts, best interest failures and inappropriate advice and its Australian financial services licence was suspended in April 2022.
Complaints needed to be made as soon as possible as complaints would not be accepted once Dixon Advisory’s AFCA membership ceased as it they could only be made against firms which were AFCA members.
Whether the complaints could be progressed would depend upon a number of factors, including the outcome of the administration process, potential class action litigation, as well as whether a CSLR is established and what its scope may be.
However, ASIC warned a compensation outcome for investors was not guaranteed as:
- A CSLR had not yet been established, and so the scheme’s final parameters remained uncertain at this time;
- Dixon Advisory was currently in voluntary administration, and the outcome of the administration process could affect clients’ eligibility to compensation; and
- Whether or not a former client of Dixon Advisory was eligible for compensation would depend on the individual circumstances of the advice that they were given, as well as the scope and operation of a CSLR.
The firm filed for voluntary administration in January 2022.