Former Dixon Advisory clients flood AFCA with complaints
The Australian Financial Complaints Authority has received more than 1600 complaints from former clients of Dixon Advisory and Superannuation Services, warning complainants to expect delays in dealing with their case.
On August 3, ASIC publicly urged former clients of the group to lodge formal complaints with AFCA if they believe they suffered a loss due to misconduct related to financial advice.
As of November 1, more than 1600 former clients have followed ASIC's direction. The body has now warned that the level of complaints may mean some delays. However, the fact that they've made a complaint does mean they will be eligible for restitution under the Compensation Scheme of Last Resort if and when it comes into being.
Dixon Advisory went into voluntary administration in January of this year, at which point AFCA paused the progress of all existing complaints against the group.
"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," AFCA said.
"Additionally, AFCA will also review the pause on complaints against Dixon Advisory when the outcome of the administration process is known as this could also affect clients' eligibility for compensation."
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