A class action has been brought against Dixon Advisory and Superannuation Services (DASS) to freeze $7.2 million in assets.
Kosen-rufu Pty Ltd, the applicant and a self-managed super fund (SMSF), asked the court to “prefer facilitating the availability of compensation for victims of misconduct if there was a risk that the wrongdoer would have insufficient means to pay both a civil penalty and possible future judgement debt”.
The case was brought against DASS, DASS owner E&P Financial Group and former chief executive, Alan Dixon.
In July 2021, DASS agreed to pay a $7.2 million penalty to settle civil penalty proceedings which alleged DASS provided conflicted financial advice and engaged in misleading and deceptive conduct. It also agreed to pay $1 million to the Australian Securities and Investments Commission (ASIC) for legal and investigative costs.
The application by Kosen-rufu was deferred for determination at a later date after ASIC requested time to consider its position.
Martin del Gallego, partner at law firm Piper Alderman, which filed the case, said: “The applicants are disappointed that the hearing of this important application did not proceed today.
“The intent of the provision is to ensure that facilitating compensation for victims is given preference over the payment of penalties, if there is a risk that a defendant cannot do both.
“We will continue to work with ASIC and DASS to favourably resolve the application as quickly as possible, and set aside the funds for possible distribution to participants in its class action at a later date.”