The Senate Economics References Committee is examining the collapse of Dixon Advisory and will report its findings next year.

The committee will also look at the insolvency’s implications for the Compensation Scheme of Last Resort and the Australian Securities and Investments Commission’s role investigating corporate collapse, according to the terms of inquiry.

Advisers have pushed for an inquiry into Dixon, which entered voluntary administration in 2022. They say the wealth management advisory’s collapse is potentially costing the financial advice profession $135 million through the industry-funded last resort compensation scheme.

Financial Advice Association Australia says the inquiry is based on terms of reference for which it has advocated.

“An inquiry is essential to understanding the full scope of what went wrong with Dixon Advisory, a scandal involving hundreds of millions in client losses, and to ensure it is not repeated,” association CEO Sarah Abood said.

“The financial advice profession is made up of thousands of small businesses ... helping Australians achieve their financial goals. We do not have the financial capacity to underwrite the misconduct of large companies, and nor should we.”

The inquiry will report by the Senate’s last sitting day of March next year.

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