On Thursday, AFCA published a “lead decision” that it said would assist decision making in the more than 1,900 Dixon Advisory and Superannuation Services (Dixon) complaints it has received to date.
The lead decision, it said, considers “core issues and principles that can be applied to a batch of similar cases”, however, it noted that not every case will have the same outcome.
Shail Singh, lead ombudsman, investments and advice, said that the lead decision will make the process for handling the Dixon cases more efficient.
“While work is well under way, it will take time to get through the large number of Dixon complaints, and we thank people for their patience,” Mr Singh said.
“The lead decision is an important milestone, and will aid efficiency, but we are obliged to consider the evidence that each complainant provides so we can make a decision about the merits of the individual complaint and, if the decision is in favour of the complainant, what any financial resolution should be. These are complex matters that require careful consideration.
“At the same time, we will continue to look for efficiencies so we can move through this unprecedented batch of complaints as quickly as possible.”
AFCA said that the Dixon collapse has generated the largest batch of common complaints against a single member firm in its five years of operation.
It added that it has doubled the size of its investments and advice decision-making team and increased its case management workforce in order to handle the flow of Dixon complaints.
The release of the lead decision follows AFCA chief operating officer Justin Untersteiner fronting the Senate economics legislation committee earlier on Thursday to face questions regarding the complaints received to date relating to Dixon Advisory.
Mr Untersteiner said, so far, 1,948 complaints have been received, valued at a total $374 million.
“The consumer claims amount to $374 million. We’re yet to review those complaints,” Mr Untersteiner said.
Asked by Liberal senator Andrew Bragg what happens next, Mr Untersteiner said a “high-level review” will ensue.
“With the passing of the CSLR bills and the legislation coming into force, the role that AFCA now undertakes is to undertake a high-level review of those complaints to make a determination on whether we think they are complaints all within the scope of the CSLR.
“Our view at the moment is that the vast majority are likely be, so as a result, we’ve started undertaking our own investigations into those complaints.”
