Dixon Advisory collapse coincided with ASIC’s dark days

Mike Taylor

Managing Editor and Publisher

26 July 2024

The reality for financial advisers questioning the Australian Securities and Investment Commission’s (ASIC’s) handling of the collapse of Dixon Advisory is that it coincided with one of the most controversial periods for the regulator including the standing aside of a chair and the resignation of a deputy chair.

While Senate Estimates awaits an answer from ASIC on which of its former commissioners or senior executives was responsible for a key decision on the prosecution of Dixon Advisory, history shows the company’s collapse coincided with previously unprecedented conduct within the regulator.

That period saw the then ASIC chair, James Shipton stand aside during an investigation into the payment of his relocation expenses from the US while his deputy chair, Daniel Crennan, resigned over the payment of his removal expenses from Melbourne to Sydney.

While a Treasury investigation ultimately cleared Shipton of wrong-doing, it is also now history that a bitter falling-out occurred between he and another ASIC deputy chair, Karen Chester.

So, when NSW Liberal Senator, Andrew Bragg recently asked the current ASIC executive who was responsible for making the decision around prosecuting the Dixon Advisory licensee rather than financial advisers, it seems little wonder that the current incumbents struggled to provide an answer.

2019/20 is not a period sensible senior ASIC operatives want to revisit.

The exchange during Senate Estimates went like this:

Senator BRAGG: How does it work at ASIC? Who makes a decision-in this case-to not go after the financial planners that did the dodgy, and to pursue just the AFSL holder, who are likely to go into administration?

Ms Court: If it were today, the enforcement committee of the commission would be making the decision based on recommendations from our investigation teams and based on legal advice that we receive prior to commencing proceedings. We seek legal advice to assist us to scope matters to work out what the appropriate best contraventions are and to assist us in who we take matters up with.

Senator BRAGG: Which commissioner signed off on this?

Ms Court: As I said, that is how the system works today. Back in 2020 I wasn’t at ASIC. I assume that the then enforcement committee signed off on it, but I could take that on notice for you.

Senator BRAGG: Does anyone else at the table know? Does someone else know which commissioner signed off on the Dixon matter?

Ms Court: It was some four years ago, I’m afraid. We can find out for you.

Senator BRAGG: You must know.