A warrant for the 49-year-old suspected con woman's arrest had been issued on behalf of the Australian Securities and Investments Commission (ASIC), who had laid almost 40 charges against Ms Caddick.
The charges will be formally withdrawn in Sydney's Downing Centre Local Court on Tuesday.
Ms Caddick went missing last November, a day after ASIC executed a search warrant at her eastern Sydney mansion.
A report released last week into her financial affairs indicated she had likely misappropriated about $25 million of investors' funds.
The only remains that have been found are her decomposing foot, which campers found washed up in a running shoe on a beach about 400km south of Sydney.
ASIC confirmed the charges would be withdrawn, as had the warrant, to enable the civil proceeding to go ahead.
ASIC reserves its rights however to reinstate the charges at a later date.
"It is not for ASIC to determine if, or speculate on whether, Ms Caddick is alive. That is a matter for the NSW Police and – should it come to that – a coroner," a spokeswoman for ASIC told AAP.
However, NSW Police Commissioner Mick Fuller has said he is satisfied Ms Caddick is dead.
"There's always a chance she cut her foot off and is still alive but that's pretty fanciful," he told 2GB radio in early March.
"We are still looking for her remains and we're still looking for where the funds may be."
The commissioner said police were still investigating and hoped to provide some justice to those aggrieved.
"We feel sorry for them but we are still looking at trying to recover funds and that investigation continues," he said.
Other bones and remains found on surrounding beaches did not belong to Ms Caddick.
Civil proceedings against Ms Caddick and her company Maliver continue.
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