Dixon Advisory and Superannuation Services (DASS) has entered voluntary administration appointing PwC partners Stephen Longley and Craig Crosbie to conduct the process.
DASS, a wholly owned subsidiary of E&P Financial Group (EP1), cited the possibility of becoming insolvent in the future as the reasoning behind the decision.
The move was made amid fears of actual and potential liabilities the entity is facing stemming from a client class action being led by Piper and Alderman and Shine Lawyers, claims against DASS being determined by the Australian Financial Complaints Authority and an agreement made with the Australian Securities and Investments Commission to pay a $7.2 million penalty and $1 million in legal fees.
The appointment of voluntary administrators was made with a view to facilitate the prompt transfer of DASS clients to a replacement service provider of the client’s choice as seamlessly as possible, and the preparation of a deed of company agreement that will provide for the comprehensive settlement of all DASS and related claims in an equitable manner for all clients and creditors.
“The appointment of voluntary administrators to DASS has become necessary in light of the increasing number of claims against DASS and the potential associated financial liabilities,” EP1 chief executive Peter Anderson said.
“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.
“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).”
EP1 stipulated the voluntary administration applies to DASS only with no impact on the other entities in the group. Further, it confirmed there will be no staff impact resulting from the move and there will be minimal disruption to client services.
