Fund Regulatory Update

Dixon Advisory to pay millions in penalties

E&P Financial Group subsidiary Dixon Advisory & Superannuation Service may have to pay over $8 million in a heads of agreement with the Australian Securities and Investments Commission (ASIC). The agreement comes after mediation ordered by the court to settle legal proceedings started by ASIC in 2020 relating to allegations that Dixon hadn’t acted in the best interests of its clients.

The agreement stipulates that Dixon will pay the Commonwealth a $7.2 million penalty and cover ASIC’s legal costs of $1 million. It was agreed that Dixon breached the Corporations Act 53 times from 2015 to 2019 relating to personal advice provided by its representatives. The resolution is subject to court approval.

Government removes $450 threshold for SG for low income earners

The government has introduced legislation to remove the $450 per month threshold from a single employer in place before an employee’s salary or wages count towards the superannuation guarantee. The people affected tend to be young, lower-income, part-time and casual workers, with around 300,000 people affected, of which 63 per cent are female.