The FAAA’s submission to the Senate Economics References Committee inquiry into wealth management companies and the impact on the CSLR, highlights the flaws in the Dixon Advisory business model and the significant contribution of product failures in causing the substantial consumer losses and complaints.
FAAA CEO, Sarah Abood says the association’s analysis “…illustrates the conflicts of interest that existed in the Dixon Advisory business and the scale of fees that were paid by the URF to Dixon Advisory and related parties.” (See: FAAA Anger at Handling of CSLR).
She says the submission has also focussed on the regulatory response to Dixon Advisory “…including the exclusive emphasis upon financial advice failings and lack of focus on what went wrong at the URF.”
Abood says the establishment of the CSLR has highlighted the underlying issues with the insolvency system in Australia “…where a parent company can walk away from a subsidiary and leave the resultant problems for the rest of the financial advice sector to pick up.”
She says in the FAAA’s view “…there are fundamental flaws in the design of the CSLR and we have set out a detailed list of recommendations to address these problems.”
Click here to see the FAAA submission and those of other industry organisations.
