The long-running Senate economics references committee inquiry into the Australian Securities and Investments Commission’s (ASIC) investigation and enforcement is coming to a close as the committee prepares to hand down its final report.
While the report was previously due to be delivered on 27 June, committee chair senator Andrew Bragg took to LinkedIn on Tuesday evening to give a preview of what advisers can expect to see in the report when it lands on Wednesday, 3 July.
“As chair of the Senate economics committee, I understand financial advisers are under huge pressure,” Bragg said.
“Next week, I will be addressing some of the pain points with ASIC levies in the final report of the Senate economics committee inquiry into ASIC investigation and enforcement.
“I know financial advisers have been ignored by the Labor government on three key areas: ASIC levies, compensation scheme levies/Dixon scandal, unworkable drafting on restricting members from using their super to pay advice fees.”
The senator added that advisers “should be worried” about the upcoming CSLR levy, which he acknowledged had been “blown out massively” on the back of complaints related to Dixon Advisory.
“The claimed Dixon losses are estimated to be $458 million according to AFCA, who have received 2,500 Dixon complaints as of June 2024,” Bragg said.
“This is an increase of 500 since February. It’s been reported that the cost to the advice profession through CSLR levies as a result of Dixon Advisory could be above $100 million.
“What’s happening here is wrong. I’ve been asking the question of why proper law enforcement hasn’t happened here, and why small businesses are carrying the can.”
Pointing to his previous canvassing of the issues surrounding Dixon throughout the inquiry, he specifically noted the “callous and cold” responses from the Labor government.
Namely, in questioning whether the government felt that ASIC had done enough in relation to Dixon during Senate estimates, Finance Minister Katy Gallagher said: “I think that question is best placed to ASIC.”
On Tuesday, Bragg said: “It is clear to me that Labor doesn’t care about the impact of these levies on small and medium financial adviser practices.
“One of the most troubling parts of the ASIC inquiry has been the lack of action against the individual advisers who created this problem. ASIC has failed to do its job and the government won’t lift a finger.
“[At] Senate estimates, ASIC couldn’t tell me which commissioner signed off on the decision to agree to a measly $7.2 million fine against Dixon, and the decision not to pursue the individual advisers who created the Dixon mess.”
The senator said that the committee’s report will address “some of these matters”, before thanking advisers for reaching out to his office to express their concerns.
“I understand them and we are working on it.”
ASIC provided a last-minute supplementary submission to the committee denying obfuscation, an allegation Bragg had first levelled at the regulator in July last year.
ASIC has adamantly denied these allegations, reiterating in its latest submission that some questions posed by the inquiry pertained to “confidential investigations” and that, to “minimise harm to individuals”, the regulator had to invoke public interest immunity.
“This is a common position for law enforcement agencies and consistent with the approach taken by regulators in other oversight committees,” the regulator said.
“ASIC has not made these claims or raised objections with the intent to obfuscate or undermine the inquiry.”
Earlier this month, Bragg’s questioning of ASIC’s function bled into the Senate economics legislation committee’s inquiry into the first Delivering Better Financial Outcomes (DBFO) bill, expressing surprise and concern at the level of involvement that the corporate regulator had in the process of drafting the bill.
“I wonder whether they’d be better at more enforcement if they weren’t spending time talking about how new laws might be created,” he said.
Pretty clear a few Senior Treasury Officials got the AMP sales pitch to move their CSS pensions to AMP flexible life time super with a 5% entry fee and now we’re all paying for it. But that’s not fair.
ASIC is corrupt, and Treasury hates Advisers. Not to mention you’ll recall serving FPA directors getting consulting gigs and old mate Ben saying “don’t worry it’s early days yet”. It has not worked out well for Advisers.
The inability to hand out a fee disclosure statement 1 day prior to the anniversary date and the term Qualified Adviser is surely the required evidence of the corruption within these regulators. They’re laughing in your faces…at least until they get that compliance consulting gig with Australian Super, for double there salary.
The presence of the Dixons Head of Advice who was also on the investment committee for Dixons, now works within Treasury within their Financial Adviser Regulation Unit. This would be a great line of inquiry for Senator Bragg to pursue further and question how any conflicts were managed, as well as this persons connection to Treasury. The public should know the number of federal bureaucrats who have personally lost money due to Dixons and whether they had any input toward the CSLR too.
The whole backdating of claims stinks! It seems like government has gone out of their way to make sure Dixons clients are compensated.
Bragg hits the nail on the head again and also queried the utter stupidity about “qualified adviser” he has been more of an advocate for sense and protection of real advisers than our professional bodies! Thank you Senator Bragg
The Regulator becomes the Legislator.
It’ absolutely unacceptable on every single level.
When ASIC is asked a straightforward question in the Senate Estimates regarding which commissioner signed off on the pathetic Dixon’s fine and to not pursue individual Dixon advisers, they can’t or won’t provide that information.
ASIC and Treasury are an untouchable secret society that operate with no restriction from Govt whatsoever.
What on earth are we looking at here ?
Probably looking at the core problem – and it does not look good?
You lot ignored us, too, Mr Bragg.
Hard to forget.
It’s so much easier throwing rocks and being a sniper in opposition! Pity the Liberals threw us all under the bus when they were in government. Now we have to deal with Stephen Jones who is a liar from the Labor party…
Your view of the Liberals is misdirected. You’ve been drinking the AIOFP cool aide.
If Bragg becomes the minister, he’ll try to make super accessible to buy housing.
Allow young people have 11.5% pay rise to buy their first home – sounds great idea.