ASIC has suspended the Australian Financial Services licence of Dixon Advisory & Superannuation Services.
A statement from the commission says the suspension follows the appointment of Stephen Graham Longley and Craig David Crosbie as joint administrators to Dixon Advisory on 19 January 2022.
It says the administrators have informed ASIC that most Dixon Advisory clients have transitioned to alternate financial services providers of their choice.
ASIC adds that “importantly”, the terms of the suspension:
- Allow Dixon Advisory’s AFS licence to continue to operate until 9 May 2022 so that existing clients who have not yet transitioned to an alternate provider can continue to access financial services
- Require the maintenance of dispute resolution arrangements including Australian Financial Complaints Authority membership until 8 April 2023
- Require the maintenance of compensation arrangements that comply with s912B of the Corporations Act 2001 until 8 April 2023.
ASIC says that under the Corporations Act 2001, it has the power to suspend or cancel an AFS licence, without holding a hearing, where the AFS licence is held by a body corporate which is placed under external administration.
It notes that Dixon Advisory has a right to seek a review of ASIC’s decision at the Administrative Appeals Tribunal.
The statement says that ASIC is also undertaking inquiries in relation to the transition of former clients of Dixon Advisory to Evans & Partners Pty Ltd, a related entity.
As background ASIC says that on 19 January 2022 E&P Financial Group Limited made an ASX announcement about the appointment of the administrators to Dixon Advisory.
On 4 September 2020 ASIC commenced civil penalty proceedings against Dixon Advisory for alleged conflicts, best interest failures and inappropriate advice. These proceedings are currently stayed and ASIC is continuing to liaise with the administrators to progress the proceedings.
