ASIC sues former director of Dixon Advisory
The corporate regulator is suing a former director of collapsed wealth firm Dixon Advisory for allegedly failing to properly consider the interests of creditors, including thousands of clients.
The Australian Securities and Investments Commission alleges that Paul Ryan breached his duties as a director when he made decisions the regulator claims advantaged Dixon Advisory’s holding company, E&P Operations, over creditors.
Mr Ryan was allegedly involved in a “corporate contingency planning project” codenamed “Project Fork”, which ran for a year or more before Dixon Advisory filed for voluntary administration in 2022.
Project Fork, according to Federal Court filings by ASIC, was set up to protect the broader corporate group from financial losses stemming from the provision of poor financial advice.
“Directors have responsibilities under the law to act in the best interests of their company, and this includes considering the interests of creditors when the company is facing insolvency,” ASIC deputy chairwoman Sarah Court said in statement on Friday.
“The creditors included thousands of financial advice clients who had invested in the US Masters Residential Property Fund and financial products operated by entities related to Dixon Advisory. These creditors suffered significant losses.”
Dixon filed for voluntary administration in early 2022. It was facing several potentially costly class actions and a $7.2 million fine for breaches of best interest obligations.
ASIC's pursuit of Dixon Advisory followed investigations by The Australian Financial Review that revealed poor advice practices among a 4000-odd client base.
In September last year, the Federal Court fined Dixon Advisory $7.2 million after finding six advisers told
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