ASIC suspends Dixon Advisory financial services licence

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ASIC has suspended the Australian financial services license of embattled Dixon Advisory and Superannuation Services.

The regulator's move follows the appointment of Stephen Graham Longley and Craig David Crosbie as joint administrators to Dixon Advisory on January 19, 2022.

According to the administrators, most Dixon Advisory clients have transitioned to alternate financial services providers of their choice.

Broken nest eggs after ASIC suspends Dixon Advisory & Superannuation Services ASFL.

The terms of the AFSL suspension allow Dixon Advisory's licence to continue to operate until May 9, 2022, so that existing clients who have not yet transitioned to an alternate provider can continue to access financial services.

It also requires the maintenance of dispute resolution arrangements including AFCA membership until April 8, 2023; and requires the maintenance of compensation arrangements that comply with the Corporations Act 2001 until April 8, 2023.

Dixon Advisory has a right to seek a review of ASIC's decision at the Administrative Appeals Tribunal.

ASIC said it is also undertaking inquiries in relation to the transition of former clients of Dixon Advisory to Evans and Partners, which is a related entity.

Evans and Partners made an ASX announcement about the appointment of administrators to Dixon Advisory on January 19, 2022.

ASIC commenced civil penalty proceedings against Dixon Advisory in 2020 for alleged conflicts, best interest failures and inappropriate advice. These proceedings are currently stayed.

This article first appeared on Financial Standard.

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Elizabeth McArthur was a journalist at Financial Standard from March 2019 to April 2022. She has a bachelor's degree in journalism from UTS and a master's in creative writing from Melbourne University.

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