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Friday 9 July 2021

21-167MR ASIC and Dixon Advisory enter conditional agreement to resolve ASIC civil penalty action

On 8 July 2021, ASIC and Dixon Advisory & Superannuation Services Limited (Dixon Advisory) entered into a heads of agreement to resolve civil penalty proceedings commenced by ASIC against Dixon Advisory in the Federal Court in September 2020.

ASIC’s proceedings relate to best interests duties under the Corporations Act, including allegations that Dixon Advisory representatives failed to act in their clients’ best interests to provide financial advice appropriate to the clients’ circumstances (20-207MR).

The heads of agreement follow Court-ordered mediation and propose that Dixon Advisory pay a $7.2 million penalty for breaches of the Corporations Act as well as $1 million to pay ASIC’s costs of its investigation and legal proceedings. The in-principle resolution between the two parties is subject to approval from the Court.

An ASX announcement outlining the agreement was made by E&P Financial Group Limited on 9 July 2021.   

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

Editor's note 1:

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.

Editor's note 2:

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

Editor's note 3:

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

Editor's note 4:

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