Aussie law firm Maurice Blackburn is representing two investors in a lawsuit against advice group Dixon Advisory over allegedly inappropriate financial advice about their self-managed superannuation fund.
According to the law firm, the advice received by couple Clare Nairn and Mark O’Toole reportedly left them A$900,000 (£484,127, $665,059, €573,338) worse off.
Craig Parrish, principal lawyer at Maurice Blackburn, told International Adviser: “Our clients placed their trust in Dixon Advisory as their professional advisers to help them plan for retirement in a balanced and measured way, and instead Dixon Advisory exposed our clients to a level of non-diversified and highly leveraged risk which they did not want nor need and invested them in products, in which Dixon Advisory had a financial interest.
“Our evidence suggests that had Dixon recommended that our clients invest their super in a balanced portfolio over the same period, our clients would have been almost $900,000 better off today. We anticipate there are many others in a similar boat.
“Any clients of Dixon Advisory who believe the investments recommended to them may have been inappropriate for their goals and objectives, or performed below their reasonable expectations, are encouraged to contact us for further advice.”
IA contacted both Dixon Advisory, however the firm declined to comment.
This recent legal bid comes several months after the Australian Securities and Investments Commission (Asic) and Dixon agreed to resolve civil penalty proceedings commenced by the Aussie regulator against the advice firm in the Federal Court in September 2020.
Asic’s proceedings related to best interests duties under the Corporations Act, including allegations that Dixon Advisory representatives failed to act in their clients’ best interests to provide financial advice appropriate to the clients’ circumstances.
Dixon agreed to pay a A$7.2m penalty for breaches of the Corporations Act as well as $1m to pay Asic’s costs of its investigation and legal proceedings.