FAAA ramps up demand for Dixon Advisory public inquiry

The Financial Advice Association of Australia (FAAA) is intensifying its call for a public inquiry into the collapse of Dixon Advisory, shedding light on the role of the Australian Securities and Investments Commission (ASIC) and its impact on the Compensation Scheme of Last Resort (CSLR).

In a bold move, the FAAA’s policy director, Phil Anderson, released a paper on social media highlighting a series of failures that led to the downfall of Dixon Advisory. Anderson emphasized that the collapse was not just about a few advisers giving poor advice, but rather a systemic issue within the business that heavily promoted flawed in-house investment products.

The FAAA’s paper raises concerns about ASIC’s lack of action against individuals responsible for running Dixon Advisory, including executives who ultimately oversaw the operations. The revelation that Dixon Advisory was ordered to pay ASIC’s legal costs of $800,000 has sparked outrage within the financial advice profession, as this cost was passed on to them through the ASIC Funding Levy.

The FAAA insists that a public inquiry is crucial to uncover the truth behind the Dixon Advisory collapse and to ensure accountability for the financial losses suffered by clients. The organization argues that the Government must launch a comprehensive investigation into Dixon Advisory, including an examination of the CSLR, in order to prevent similar incidents from occurring in the future.

As the demand for a public inquiry grows, the FAAA is determined to seek justice for the clients of Dixon Advisory and to restore confidence in the financial advice profession. The call for transparency and accountability in the aftermath of the Dixon Advisory scandal underscores the importance of regulatory oversight and consumer protection in the financial services industry.