Uncertainty hits self-managed super funds as Dixon Advisory goes into liquidation | Canberra time

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Thousands of ACT investors would be affected by news on Wednesday that Australia’s fourth self-managed super fund, Dixon Advisory, has entered voluntary administration due to rising claims against the company. The “wealth management” company was started in Canberra more than 35 years ago by Daryl Dixon, a respected and top pensions expert. The company said in a statement that the administrators of Dixon Advisory and Superannuation Services (DASS) – a wholly owned subsidiary of E&P (Evans and Partners) financial group – “have determined that the actual increase and potential liabilities mean that it is likely to become insolvent at a later time.” “No client assets are at risk…as a result of this process,” the company said in a statement to the ASX. The company’s liabilities arise of a class action lawsuit launched late last year by commercial law firm Piper Alderman, which accused the company of misleading and misleading conduct, and that it failed to act in the best interests of its clients. The class action alleged that Dixon Advisory’s investment committee approved and recommended products that were “pushed” by clients. These products were used to pour millions of dollars in fees into the company. insolvency é comes after Dixon Advisory was embroiled in a series of controversies. In July last year, the company was forced to pay a fine of $7.2 million for violating the Companies Act, as well as $1 million to cover the costs of the investigation and prosecution Australian Securities and Investments Commission. Then another law firm, Maurice Blackburn, sued the company on behalf of clients for allegedly poor super advice. Dixon Advisory was founded in Canberra in 1986 to provide reliable and sound pension and retirement advice, its prominent sign on Northbourne Avenue. Daryl Dixon and his son, Alan, had both served on the investment committee until 2019. One of the company’s most speculative investments had been large volumes of real estate in New Jersey and New York. as part of the US Masters Residential Fund, in which the would buy a property, renovate it and put it back on the market. In its statement to the ASX on Wednesday, the company said it had named PricewaterhouseCoopers Partners as its liquidator and would “facilitate a rapid transfer of DASS clients to an alternate service provider.” Our reporters work hard to provide local, up-to-date news to the community. Here’s how you can continue to access our trusted content:

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