Former ‘Dixon Advisory’ Clients Should Lodge a Complaint With AFCA

Former clients of Dixon Advisory and Superannuation Services Pty Limited (‘Dixon Advisory’), may be eligible for compensation under a potential future Compensation Scheme of Last Resort (CSLR) but they will need to take action as soon as possible.

ASIC will soon be writing to former clients of Dixon Advisory to inform them that if they believe they have suffered loss as a result of the misconduct of Dixon Advisory and/or their former Dixon Advisory financial adviser in providing financial advice, they should make a complaint to the Australian Financial Complaints Authority (AFCA).  

As complaints may only be made against firms who are members of AFCA, complaints against Dixon Advisory should be made as soon as possible. If Dixon Advisory’s AFCA membership ceases, no further complaints can be accepted. In addition, former clients of Dixon Advisory should monitor their mailboxes, inboxes, and spam folder for correspondence from ASIC.

Lodging a complaint with AFCA is a necessary step for clients to be eligible for a potential CSLR. However, even if a complaint is lodged with AFCA, a compensation outcome is not guaranteed. This is due to a number of factors, including that:

• A CSLR has not yet been established, so the scheme’s final parameters remain uncertain at this time;
• Dixon Advisory is currently in voluntary administration, and the outcome of the administration process could affect clients’ eligibility for compensation; and
• Whether or not a former client of Dixon Advisory is eligible for compensation will depend on the individual circumstances of the advice that they were given, as well as the scope and operation of a CSLR.

If a former client of Dixon Advisory has already lodged their complaint with AFCA there is no need for them to do anything further.

AFCA will accept and register complaints lodged against Dixon Advisory while it remains a member. Whether the complaints can be progressed will 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.  

Compensation Scheme of Last Resort (CSLR)

The establishment of a CSLR was recommended by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Recommendation 7.1).

The CSLR would facilitate the payment of compensation to eligible consumers who have received a determination for compensation from the Australian Financial Complaints Authority (AFCA), which remains unpaid.

Legal Help After Bad Financial Advice

If you’re questioning the advice you received from a financial advisor and are thinking about taking steps against them, contact us. We are committed to ensuring our clients receive the best possible advice and guidance on their situation, especially in financial matters. You can contact us online, call us at 1300 433 533 or email us at enquiry@fdlegal.com.au.