ASIC suspends Dixon Advisory’s AFS licence
ASIC has suspended the Australian Financial Services (AFS) licence of Dixon Advisory & Superannuation Services Pty Limited (DASS).
The suspension followed the appointment of Stephen Graham Longley and Craig David Crosbie as joint administrators to Dixon Advisory in January 2022, after civil penalty proceedings were carried out by the Australian Securities and Investments Commission (ASIC) against Dixon Advisory in September 2021.
The firm was put into administration in January as its directors determined mounting actual and potential liabilities meant it was likely to become insolvent.
The administrators informed ASIC that most Dixon Advisory clients had transitioned to alternate financial services providers of their choice.
The terms of the suspension:
- Allowed Dixon Advisory’s AFS licence to continue to operate until 9 May, 2022 so that existing clients who had not yet transitioned to an alternate provider could continue to access financial services;
- Required the maintenance of dispute resolution arrangements including Australian Financial Complaints Authority membership until 8 April, 2023; and
- Required the maintenance of compensation arrangements that comply with s912B of the Corporations Act 2001 until 8 April, 2023.
Under the Corporations Act 2001, ASIC had the power to suspend or cancel an AFS licence, without holding a hearing, where the AFS licence was held by a body corporate which was placed under external administration.
Dixon Advisory had a right to seek a review of ASIC’s decision at the Administrative Appeals Tribunal.
ASIC was also undertaking inquiries in relation to the transition of former clients of Dixon Advisory to Evans & Partners Pty Ltd, a related entity.
AUTHOR
Liam Cormican
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