- E&P Financial Group (EP1) subsidiary Dixon Advisory and Superannuation Services (DASS) appoints PwC partners Stephen Longley and Craig Crosbie as voluntary administrators
- The appointment was made because the DASS directors determined mounting actual and potential liabilities mean it is likely to become insolvent at some future time
- E&P aims to promptly transfer DASS clients to a replacement service provider and propose a Deed of Company Arrangement (DOCA)
- E&P says the voluntary administration does not affect other EP1 entities, no client assets are at risk, there will be no DASS staff impact and minimal disruption to client service
- EP1 shares steady at 58 cents
E&P Financial Group (EP1) has announced its wholly owned subsidiary Dixon Advisory and Superannuation Services (DASS) has appointed PwC Partners Stephen Longley and Craig Crosbie as voluntary administrators.
E&P said the appointment was made after the DASS directors determined mounting actual and potential liabilities were likely to result in DASS becoming insolvent at some future time.
Actual or potential liabilities include possible damages arising from the representative proceedings led by Piper Alderman and Shine Lawyers, claims against DASS being determined by the Australian Financial Complaints Authority (AFCA) and penalties agreed between DASS and the Australian Securities and Investments Commission (ASIC).
E&P said it would work on promptly transferring DASS clients to a replacement service provider of the client’s choice with minimal disruption to client service.
E&P said it would also propose a Deed of Company Arrangement to the administrators incorporating a comprehensive settlement of all DASS and related claims (including the representative proceedings) in a manner that provided for equitable treatment of DASS clients and creditors.
E&P Managing Director Peter Anderson said it became apparent that settling individual claims as they arose would likely lead to inequities between client creditors.
“Voluntary administration provides an appropriate framework to ensure all client creditors are treated equitably,” he said.
“Importantly, no client assets are at risk as a result of this process, and we will strive to minimise any disruption to clients who will have ongoing access to their advisers.”
The company said the voluntary administration does not affect other E&P entities and there will be no DASS staff impact.
E&P said it acknowledged the heads of agreement entered into between DASS and ASIC relating to alleged breaches by DASS of the Corporations Act, including the agreed penalty and contribution to ASIC’s costs.
E&P said it intended contributing an equivalent sum for the benefit of creditors as part of the comprehensive settlement of all DASS and related claims.
EP1 shares were steady at 58 cents at 3:08 pm AEDT.