Dixon Advisory files for voluntary administration due to ‘mounting’ liabilities

Dixon Advisory and Superannuation Services (DASS) – wholly owned subsidiary of E&P Financial Group (EP1) – confirmed the move in a statement, saying directors “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 that alleged that Dixon Advisory failed to act in the best interests of clients after its investment committee approved and recommended products to “be pushed on” to group members that 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.

In October, DASS was also sued by a couple for poor retirement advice that left them $900,000 worse off.

DASS confirmed on Wednesday (19 January) that PwC partners, Stephen Longley and Craig Crosbie, have been appointed as voluntary administrators.

EP1 managing director and chief executive Peter Anderson said the appointment was “necessary” due to the “increasing number of claims” against DASS.

“It has also become apparent that settling individual claims as they arise will likely lead to inequities between client creditors. Voluntary administration provides an appropriate framework to ensure all client creditors are treated equitably,” Mr Anderson said.

“Importantly, no client assets are at risk as a result of this process and we will strive to minimise any disruption to clients who will have ongoing access to their adviser(s).”

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.