Where next for Dixon Advisory?

Evans & Partners (E&P) has set aside $8.2 million for penalties related to Dixon Advisory & Superannuation Services (DASS) as 70% of DASS clients transfer to the firm.

DASS, a subsidiary of E&P, entered into voluntary administration in January as it was feared the firm would become insolvent.

Announcing its results, E&P said 70% of DASS clients had asked to transfer to E&P and 16% had chosen to transfer to an external service provider. This left 14% of DASS clients who were still yet to advise the firm of their preference.

The firm said it made commitments during the transition period including continuing operations and making technology and systems available to facilitate DASS’ ongoing operations. These would be in place until 30 June, 2022.

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Going forward, the firm said it had set aside $8.2 million in penalties and costs.

“The group intends to propose a deed of company arrangement to the voluntary administrators as part of a wider arrangement that will include, among other matters, a comprehensive settlement of the Piper Alderman and Shine Lawyers representative proceedings and all other claims.

“The group intends to contribute a sum equivalent to $8.2 million in penalties and costs agreed in the ASIC proceeding for the benefit of creditors as part of a comprehensive settlement of all DASS and related claims.”

DASS was also the subject of open cases with the Australian Financial Complaints Authority (AFCA) regarding alleged breaches by DASS in connection with personal advice provided by DASS representatives in respect to the US Masters Residential Property fund.

Following the appointment of voluntary administrators, AFCA said the handling of these cases was currently on pause.