The Federal Court has imposed a $7.2 million penalty on Dixon Advisory and Superannuation Services after representatives failed to act in clients' best interests and failed to provide advice appropriate to their clients' circumstances.
The court on Monday found that on 53 occasions between October 2015 and May 2019, the firm was the responsible licensee of six representatives who did not act in the best interests of eight clients when they advised these clients to acquire, roll over, or retain interests in the firm's high-risk US Masters Residential Property Fund and related products.
In some cases, clients' self-managed superannuation funds were insufficiently diversified and exposed to risk of capital loss.
