Senators ask why advisers should pay for Dixon Advisory collapse
While the Senate has demanded unredacted documentation from Treasury relating to the collapse of Dixon Advisory, the Australian Securities and Investments Commission (ASIC) is being asked why financial advisers will be hit by the collapse via the ASIC funding levy.
A question on notice asked during Senate Estimates by Queensland Liberal Senator, Susan McDonald, has not only asked ASIC how much the Dixon Advisory matter has cost the regulator, but who is being expected to pay.
As well, Senator McDonald has asked whether, in circumstances where Dixon Advisory was part of a vertically-integrated group, it is fair that financial advisers will be hit via the levy.
“…is it fair that a vertically integrated group like E&P Financial Group, with a large investment management business, could place one of their advice subsidiaries into liquidation and then leave it for small business financial advisers to pick up the cost, while the remainder of that group seemingly gets off scott free?” McDonald asked.
Similarly, NSW Liberal Senator, Andrew Bragg noting that the Full Federal Court had dismissed an appeal by ASIC in the case against the Commonwealth Banka and Colonial First State related to conflicted remuneration.
Bragg has asked ASIC how much the case has cost the regulator so far and, under the ASIC Industry Funding Model, which sector or sectors are paying for the case and why?
The Senate earlier this week backed Bragg’s motion demanding that the Government allow access to key documents behind the “Dixon Advisory/ASIC./CSLR scandal”.
The motion demanded that the minister representing the Treasurer table the documents by no later than midday yesterday.
ASIC has been subject to a series of questions on notice relating to enforcement projects it has on foot, with Coalition Senators asking why the cost of those projects such as unlicensed advice should be attributed to financial advisers and therefore add to the cost of the ASIC levy.
If I dress up in a white coat & start performing surgeries, is it fair that qualified doctors pay for the fall out I cause?
If I dress up as an ASIC Regulator and do absolutely nothing about years and years of warning about Dixon’s dodgy MIS’s, then blame ALL Advisers and stitch them up by advertising the CSLR, is it fair ?
A point I’ve used many times myself. Hang a stethoscope around your neck, cause harm and get the medical association to pay the costs. Yeah that sounds fair.
If I’m a next to useless politician/legislator/regulator, is it fair that the general public wear the cost? Apparently……
I guess those that don’t make political Donations or have compromised associations, get lefted footing the bill.
Senators Bragg and McDonald seem to be the only elected officials on either side of the aisle willing to take ASIC to task for its incompetence. Perhaps they’re the only ones with some understanding of how the industry works and so don’t fall for the standard adviser scapegoating.
We need more like them.
Agree that Bragg seems to be doing a good job in the Senate Inquiry. But he really needs to give up on his “using super to purchase a home” hobby horse, which he gave yet another run in the AFR recently. It’s a bad idea however you dress it up, and undermines his credibility.