Total
0
Shares
E&P Financial Group (ASX:EP1) - Executive Chairman, David Evans
Executive Chairman, David Evans
Source: E&P Financial Group
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • 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.

EP1 by the numbers
More From The Market Herald
ISX (ASX:ISX) - Managing Director, John Karantzis

" iSignthis (ASX:ISX) completes demerger

Software company iSignthis (ISX) has completed the demerger of its European business ISC Financial EU (ISXFEU).
MoneyMe (ASX:MME) - CEO, Clayton Howes

" MoneyMe (ASX:MME) hits $1b originations milestone

MoneyMe is celebrating after hitting a $1 billion in originations milestone during the recent September quarter of the 2021 financial year.
PayGroup (ASX:PYG) - Managing Director, Mark Samlal

" PayGroup (ASX:PYG) releases strong September results and FY22 guidance

PayGroup (PYG) is releasing its annual recurring revenue (ARR) guidance for the 2022 financial year.
Zip Co (ASX:Z1P) - Global CEO and Cofounder, Larry Diamond

" Zip Co (ASX:Z1P) announces record September quarter

Zip Co’s (Z1P) share price has risen as it announces a record September quarter.