Case study: Dixon Advisory & Superannuation Services Pty Ltd

DASS was a financial services firm providing investment advice and accounting services to self-managed superannuation funds. It entered external administration following mounting claims against it by its clients exceeding $367 million, and ASIC penalty proceedings regarding the provision of financial services to its clients, which resulted in a pecuniary penalty and costs of $8.2 million.

Clayton Utz acts for the liquidators (formerly voluntary administrators and deed administrators of a deed of company arrangement (DOCA)), on all aspects of the external administration including:

• completion of the DOCA, including advice in relation to adjudication of more than 4,500 creditor claims and distribution of the deed fund to participating creditors;

• settlement of two class actions commenced shortly prior to the administration process;

• court application to vary the DOCA;

• court application to approve the use of a loss methodology for the adjudication of creditor claims under the DOCA;

• court application to obtain relief in respect of certain liquidator reporting obligations;

• advice regarding creditor access to the Commonwealth Compensation Scheme of Last Resort (CSLR); and

• negotiations with AFCA and CSLR regarding the provision of information and adjudication of creditor claims.

The CSLR scheme was introduced primarily in response to DASS's collapse, which is a highly contentious scheme within the financial services industry. The matter involves complex issues arising from competing stakeholder interests including other litigation parties, creditors, regulatory bodies and related group companies.

Lead partner: Paul James. Assisted by Jonathon McRostie, Jackson Macaulay and Sophia Griffiths-Mark.