The Australian Securities and Investments Commission is investigating wealth manager Evans Dixon Ltd. over alleged conflicted advice it gave to clients, The Australian Financial Review reported, citing sources who have complained or provided information to the regulator.
The corporate regulator is looking into the Dixon Advisory arm, which merged with boutique firm Evans & Partners in February 2015. The investigation focuses on cases where former clients were advised to invest more than half their savings in funds that Dixon managed. The funds posted below-market returns but charged above-market fees.
Several clients have complained to ASIC and the Australian Financial Complaints Authority over the alleged conflicted advice given to them.
An ASIC spokeswoman declined to confirm if it had received complaints or if it was pursuing the matter further. The AFCA also declined to comment on specific details regarding the complaints.