- E&P Financial Group’s (EP1) subsidiary Dixon Advisory & Superannuation Service may have to pay over $8 million as part of an agreement with ASIC
- The parties agreed to the settlement over proceedings commenced by ASIC in September 2020
- The subsidiary agreed to pay a $7.2 million penalty and cover ASIC’s legal costs, which were agreed at $1 million, for breaching the Corporations Act
- The in-principle resolution between the two parties is subject to approval from the court
- E&P Financial Group shares closed today’s session up 7.14 per cent at 75 cents
E&P Financial Group’s (EP1) subsidiary Dixon Advisory & Superannuation Service (DASS) could be expected to pay more than $8 million as part of a heads of agreement with ASIC.
The agreement follows court-ordered mediation to reach a settlement over legal proceedings commenced by ASIC in September 2020 concerning allegations the subsidiary had failed to act in the best of its clients.
Under the agreement, Dixon Advisory and Superannuation Service has agreed to pay the Commonwealth a $7.2 million penalty and cover ASIC’s legal costs, which were agreed at $1 million.
The parties also agreed to the declarations by the Court that DASS breached the Corporations Act on 53 occasions between 2015 and 2019 in relation to personal advice provided by its representatives.
The in-principle resolution between the two parties is subject to approval from the Court.
The Board of EP1 said it viewed the agreement an important step towards resolving the legal proceeding between ASIC and DASS, emphasising that it had undertaken “extensive management and governance changes” to ensure the subsidiary acts in its clients best interests.
E&P Financial Group shares closed today’s session up 7.14 per cent at 75 cents.