ASIC and Dixon Advisory reach in-principle resolution subject to approval from the Court.

On July 8th, 2021, ASIC and Dixon Advisory & Superannuation Services Limited (Dixon Advisory) reached a preliminary agreement to settle civil penalty proceedings initiated by ASIC against Dixon Advisory in the Federal Court in September 2020.

ASIC's legal action concerns breaches of best interests duties under the Corporations Act, alleging that Dixon Advisory representatives failed to act in their clients' best interests by providing suitable financial advice tailored to their individual circumstances as mentioned in previous ASIC Media Release (20-207MR).

The heads of agreement follow a Court-mandated mediation process and propose that Dixon Advisory pay a $7.2 million penalty for violations of the Corporations Act, with an additional $1 million to cover ASIC's costs associated with the investigation and legal proceedings. This tentative settlement is contingent upon approval by the Court.

E&P Financial Group Limited made an ASX announcement on July 9, 2021, outlining the terms of the agreement.

ASIC has indicated it will provide further comments on the matter once the Court has made its determination.

This information comes from the ASIC Media release published on the 9th of July 2021. The information is true at the time of publishing. For additional information please see ASICs Media Release (21-167MR)

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Update

The matter was listed for a hearing of the joint submissions on liability and penalty on 25 November 2021.

The hearing of 25 November 2021 has now been adjourned to 28 January 2022.

Update 2

The hearing date of 28 January 2022 has been vacated and will be rescheduled to a date to be fixed.

Update 3

The matter has been relisted for hearing on 2 August 2022.

Update 4

The hearing on liability and penalty took place on 2 August 2022. Judgment has been reserved.

Please Note - Updates are also taken from the ASIC media release when it is updated.