Senator Bragg comments on advisor issues

Senator Andrew Bragg has provided a scathing critique of ASIC levies, CSLR and s99FA. He says that what is happening is wrong.

As chair of the Senate Economics Committee, I understand financial advisers are under huge pressure. Next week, I will be addressing some of the pain points with ASIC levies in the final report of the Senate Economics Committee inquiry into ASIC investigation and enforcement.

I know financial advisers have been ignored by the Labor Government on three key areas:

  • ASIC levies
  • Compensation scheme levies / Dixon scandal
  • Unworkable drafting on restricting members from using their super to pay advice fees.

I understand that financial advisers are very worried about the upcoming CSLR levy, which has blown out massively due to Dixon Advisory complaints. And you should be worried.

The claimed Dixon losses are estimated to be $458 million according to AFCA, who have received 2500 Dixon complaints as of June 2024.

This is an increase of 500 since February. It’s been reported that the cost to the advice profession through CSLR levies as a result of Dixon Advisory could be above $100 million.

What’s happening here is wrong. I’ve been asking the question of why proper law enforcement hasn’t happened here, and why small businesses are carrying the can.

I set out the curious case of Dixon Advisory in a speech to the Senate last year:

Furthermore, at Senate Estimates just a few weeks ago I canvassed the issue of the Dixon Levy with the Labor Government. Their answers were callous and cold:

It is clear to me that Labor doesn’t care about the impact of these levies on small and medium financial adviser practices.

One of the most troubling parts of the ASIC inquiry has been the lack of action against the individual advisers who created this problem. ASIC has failed to do its job and the government won’t lift a finger.

As Senate Estimates, ASIC couldn’t tell me which Commissioner signed off on the decision to agree to a measly $7.2 million fine against Dixon, and the decision not to pursue the individual advisers who created the Dixon mess:

Next week we will deliver a report to address some of these matters, but in the interim, I thank all the advisers who have contacted my office with your concerns. I understand them and we are working on it.


Senator Andrew Bragg

Senator for New South Wales at Commonwealth of Australia.

Authorised by Andrew Bragg, Liberal Party, Sydney.