When Senator Pauline Hanson moved a motion in the Senate for an inquiry into the collapse of Dixon Advisory and its impact on the Compensation Scheme of Last Resort (CSLR), its approval was welcomed by the financial advice sector.
“Today marks a major step forward for our profession, and we want to thank Senator Hanson for her support in seeking transparency and for backing Australia’s small financial advice businesses in proposing this inquiry today,” Financial Advice Association Australia (FAAA) chief executive Sarah Abood said in September.
However, three months after submissions to the inquiry closed, no hearings have been announced and no witnesses have been called, despite a reporting date set for the last sitting day in March – election permitting.
According to the FAAA, the “revelations of a blow-out” to the CSLR levy for the FY2025–26 and Financial Services Minister Stephen Jones’ announcement of a Treasury review of the scheme should not result in a delay to the Dixon inquiry’s work.
As such, the association has called for urgent progress on the inquiry and urged the chair and deputy chair – senators Andrew Bragg and Jess Walsh, respectively – to call witnesses.
“The events of last week should not be an excuse to delay the Senate inquiry in Dixon Advisory,” Abood said.
“The case had been made for the critical importance of this inquiry, and stakeholders have provided multiple submissions. There is much that still needs to be investigated. Senators Bragg and Walsh should call witnesses for this inquiry immediately.
“We have continued to unearth problems not only at Dixon Advisory but also at other firms where a variety of problems have arisen.”
Across the range of submissions made to the Senate inquiry, industry stakeholders and impacted individuals raised a vast array of concerns and questions that need to be answered, yet there has been little action in progressing beyond the consultation period.
“Advisers are rightly angry that it now appears as though there is a continued effort to not delve into these issues and to avoid a genuine investigation of where this has all gone wrong,” Abood added.
“It is particularly critical to progress with this investigation now, in light of the estimates that the financial advice profession could end up paying an additional $50 million for CSLR next financial year, on top of the $20 million sector cap.
“The FAAA continues to advocate for members’ interests and has been calling on the government to fix problems with the CSLR since before it was legislated.”
Given Minister Jones has announced his retirement and a federal election is on the horizon, there is concern that the inquiry could be lost in the shuffle.
“If anyone is in any doubt that there are problems with the way that the CSLR has been designed, and the potential implications emanating from not just Dixon Advisory but other firms, then they need only to read the submissions that have already been made,” Abood said.
“Much of the work to determine the problems with the CSLR has already been done, and it must not go to waste.”
And AFCA continue to rollout more determinations against Dixon Advisory. As of today (4th Feb, 2025) there are 119 claims determined for a total of $34.5 million representing a CSLR payout of $15.2M. All of the determinations are available on the AFCA website and reveal an insight into the unethical and immoral behaviour of the company from the head down. Surely there is enough evidence in these determinations to be able to prosecute the wrong doers? Otherwise the laws that govern the activities of such organisations are a complete failure.
Labor dont Care they just want to kill our profession vote them out. Disgusting liars
Have you missed the last 12 years??
And the difference is?
Hold Jones’ feet to the fire.
Nerida Cole, please take the stand.
Previous head of Dixon’s Advisers.
On Dixon’s investment selection board.
Then employed at Treasury when the dodgy CSLR has been implemented.
How do such actions escape any real scrutiny ??
Always have, always will. Just like the bank executives from before the royal commission, who are still holding management positions across the industry—and yet we wonder why history inevitably repeats itself.
Has anyone ever been prosecuted under the so-called Banking Executive Accountability Regime?
I typed a comment and it wasn’t even approved.
Stop filtering free speech IFA!