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.