ASIC Suspends AFS License of Dixon Advisory, Client Transition Ongoing

The Australian Securities & Investments Commission (ASIC) announced on Tuesday the suspension of the Australian Financial Services (AFS) license of Dixon Advisory & Superannuation Services Pty Limited (Dixon Advisory).

The suspension came after the regulator appointed Stephen Graham Longley and Craig David Crosbie as the joint administrators of the company in mid-January.

A Troubled Company

Dixon Advisory provides a range of financial services. According to its website, its offerings include strategic financial advice, investment advice, estate planning and much more.

The troubles of Dixon Advisory started in 2020 when the Aussie financial market supervisor slapped civil penalty proceedings against the company for alleged conflicts, best interest failures and inappropriate advice.

The regulator further highlighted that the administrators have informed that most of Dixon Advisory’s clients already transitioned to alternative financial services advisory platforms.

However, the terms of the AFS license suspension still allow the company to operate until May 9, 2022, ensuring services to the clients who are yet to make a transition to another financial service provider.

In addition, Dixon Advisory needs to maintain dispute resolution arrangements that include its membership commitments to the Australian Financial Complaints Authority until April 2023. It should further require compensation arrangements.

Meanwhile, ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term is enquiring about the transition of some of Dixon Advisory clients to a related entity. Moreover, the regulator is in discussions with the regulators about the previous civil penalty proceedings against Dixon Advisory, which are currently stayed.

ASIC oversees and licenses players in the Australian financial markets. Furthermore, it is regarded as one of the reputed regulators due to the strict regulatory regime. Last month, it decided to drag Macquarie Bank to court for lapses in its withdrawal system.

Finance Magnates earlier reported that the Aussie regulator had imposed total civil monetary fines of more than $63 million on regulated entities in the last six months of 2021 for compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term lapses.