The move comes after it filed for voluntary administration in January with E&P Financial Group directors saying at the time that it “determined that mounting and actual potential liabilities mean it is likely to become insolvent at some future time”.
The actual or potential liabilities relate to possible damages from proceedings that include a class action lodged by Piper Alderman last November which alleged that “Dixon Advisory failed to act in the best interests of clients after its investment committee reviewed, approved and recommended which products were to be pushed on to group members” whom Dixon Advisory stood to earn millions in fees from.
The liabilities also relate to claims against DASS by the Australian Financial Complaints Authority (AFCA) and penalties by ASIC
The administrators, PwC partners’ Stephen Longley and Craig Crosbie, have since confirmed to ASIC that most clients of Dixon Advisory have moved to alternate financial services providers.
The suspension will allow Dixon Advisory’s AFS licence to continue to operate until 9 May 2022 to allow existing clients yet to transition to access services and requires the maintenance of dispute resolution arrangements including AFCA membership until 8 April 2023.
Dixon Advisory has the right to appeal ASIC’s decision at the Administrative Appeals Tribunal.
Great work ASIC. Wait until they close the doors themselves before you take action. On behalf of their clients who have been taken to the cleaners for years, you must feel incredibly proud that you have protected their interest.
Disgraceful that ASIC have taken this long. Directors should be jailed and all advisers banned for life. Financial abuse at its worst.