The drawn-out saga of Dixon Advisory – the superannuation managers who enticed their clients into investment assets they managed – has come to an end. Four cents to the dollar for the superannuants; millions for lawyers, accountants and ASIC. What’s the scam?
The scam is how Dixon Advisory enticed their superannuation clients into investing in assets that they managed, in many cases without properly considering their client’s circumstances when making those investments.
In October 2022, the Federal Court found that “on 53 occasions between October 2015 and May 2019, Dixon Advisory was the responsible licensee of six representatives who did not act in the best interests of eight clients when they advised these clients to acquire, roll-over or retain interests in the US Masters Residential Property Fund (URF) and URF-related products.”
The case had been brought by ASIC, and the court imposed a $7.2 million penalty on Dixon, then in administration as a result of class actions brought by Dixon’s clients.
Dixon Advisory has now been wound up, but the Government (ASIC) will still receive the money, being a priority creditor. As ASIC only gets to keep about 25% of the money it receives, the rest goes to Treasury.
Then out of what is left, accountants PwC and the lawyers – including Shine Justice – who have been managing the class action and the administration process get their shares.
All up, Dixon Advisory was found to have lost $368M for 4,606 of their clients. That’s an average of $79,895 of losses each. At four cents in the dollar, they are left with $3,195 each in compensation.
Apparently, that’s what world-class corporate regulation yields for the real victims…
Kim Wingerei is a businessman turned writer and commentator. He is passionate about free speech, human rights, democracy and the politics of change. Originally from Norway, Kim has lived in Australia for 30 years. Author of ‘Why Democracy is Broken – A Blueprint for Change’.