Dixon Advisory and Superannuation Services (DASS) has been put into administration as its directors determine that mounting actual and potential liabilities meant it was likely to become insolvent at some future time.
In an announcement to the Australian Securities Exchange (ASX), DASS parent E&P Financial Group said it appointed PwC Partners as voluntary administrators.
The actual or potential liabilities included:
- Possible damages arising from representative proceedings led by Piper Alderman and Shine Lawyers;
- Claims against DASS being determined by the Australian Financial Complaints Authority (AFCA); and
- Penalties agreed between DASS and the Australian Securities and Investments Commission (ASIC).
E&P said following the appointment of the administrators it aimed to:
- Facilitate the prompt transfer of DASS clients to a replacement services provider of the client’s choice with minimal disruption to client service; and
- Propose a deed of company arrangement for the comprehensive settlement of all DASS and related claims in a manner which provided for equitable treatment of all DASS clients/creditors.
E&P also said the voluntary administration related only to DASS, no client assets were at risk, there would be no staff impact, and there would be minimal disruption to client service.
E&P chief executive and managing director, Peter Anderson, said: “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.
“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.”