Dixon Advisory Agrees to Pay $8.2 million to Settle with ASIC

The Australian Securities and Investments Commission (ASIC) announced today that it has entered into a heads of agreement with Dixon Advisory and Superannuation Services Limited (Dixon Advisory), a subsidiary of ASX-listed E&P Financial Group Limited, to resolve ASIC civil penalty action.

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Let's recall that, on 4 September 2020, the ASIC has commenced proceedings in the Federal Court of Australia against Dixon Advisory, alleging that the firm's representatives failed to act in their clients' best interests and to provide advice that was appropriate to the clients' circumstances.  

The regulator also alleged that Dixon Advisory representatives knew or ought to have known there was a conflict between their clients' interests and the interests of entities associated with Dixon Advisory within the E&P Financial Group, and failed to give priority to clients' interests.

Under the heads of agreement, Dixon Advisory agrees to pay to the Commonwealth a pecuniary penalty of $7.2 million which may be paid in 2 equal instalments on 31 December 2021 and 31 March 2022 if the Court makes final orders in the legal proceedings before 1 November 2021.

Dixon Advisory also needs to pay ASIC's legal costs of its investigation and the legal proceedings agreed at $1 million, which may also be paid in 2 equal instalments on 31 December 2021 and 31 March 2022.

ASIC will provide further comment after the matter has been determined by the Court.