Dixon Advisory has used its FSI submission to single out Professional Investment Services (PIS) as an “independently-owned” advice group that was “negligent in its provision of advice”.
Dixon Advisory's second submission to the Financial System Inquiry argues institutionally-aligned advisers are not solely responsible for the scandals that have ensnared the advice industry.
“Business ownership is not necessarily an indicator of quality of advice,” the Dixon submission said.
“Recent concerns with bank-owned financial planners are well documented, but between 2008 and 2013, independently-owned network of financial advisers and accountants Professional Investment Services was found to be negligent in its provision of advice,” it said.
“[PIS failed] to adequately explain the risks involved investments, offer alternatives and advised clients to invest in the failed Westpoint Group companies and Queensland olive farm investment scheme,” the submission said.
Dixon Advisory also pointed out the disparity in cases that went to the Financial Services Ombudsman (FOS) between PIS and institutionally-aligned groups.
“Between 2011 and 2013, PIS, who has a relatively small client base, was involved in 162 FOS cases compared to FOS cases for bank-owned Commonwealth Financial Planning recorded at 94 cases and 31 for Macquarie Bank,” the submission from Dixon said.
ASIC ended its nine-month review of the Centrepoint Alliance-owned dealer group’s advice services and compliance procedures in July this year.
ifa sought a response from Centrepoint Alliance in relation to Dixon’s comments, but the company failed to respond by deadline.
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