ASIC is encouraging former Dixon Advisory clients to register complaints to AFCA if they want to be eligible for remediation through the compensation scheme of last resort.
In a media statement released Wednesday afternoon, the corporate regulator stated it will write to former Dixon clients to inform they should make a complaint.
Because complaints can only be made against firms that are AFCA members, ASIC stated that claims should be made as soon as possible as no grievances can be made if Dixon’s membership ceases.
ASIC stated that lodging a complaint is a necessary step for clients to preserve their eligibility under a potential future CSLR.
However, even if a complaint is lodged with AFCA compensation is not guaranteed due to the CSLR not yet being established and the parameters of the scheme yet to be finalised with the bill lapsing at the end of last Parliament.
Additionally, because Dixon Advisory is in voluntary administration and an outcome is undecided, it could affect clients’ eligibility to compensation, as well as individual eligibility of former clients.
“Whether the complaints can be progressed will depend upon a number of factors, including the outcome of the administration process, potential class action litigation, as well as whether a CSLR is established and what its scope may be,” ASIC stated.
What goes up, goes down
AFCA paused progress of all complaints against Dixon Advisory in January in line with its policy for the handling of complaints involving insolvent firms.