ASIC has taken Melbourne-based NSG Services Pty Ltd to court for breaching the 'best interests duty' introduced as part of the FOFA reforms.
The court case marks the first civil penalty action ASIC has taken against a licensee for alleged breaches of the 'best interests duty' created under the Future of Financial Advice (FOFA) reforms.
ASIC alleges that NSG Services failed to take reasonable steps to ensure that its advisers complied with the best interests obligation when providing advice to clients.
The regulator also alleges that, on "numerous occasions", NSG advisers failed to act in the best interests of their clients.
ASIC also claims that NSG failed to provide appropriate training to its advisers, had innapropriate risk management and compliance policies, and sold clients insurance and/or superannuation accounts that "committed them to costly, unsuitable, and unnecessary financial arrangements".
NSG also failed to conduct regular and/or substantive performance reviews of advisers, said ASIC.
The first hearing of the matter is listed before the Federal Court of Australia on 8 July 2016.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 24 May 2018Suncorp Advice enters deal with MidwinterBy Reporter
- 24 May 2018ANZ dealer group boss jumps ship to Aus UnityBy Reporter
- 24 May 2018Elder abuse may stem from additional SMSF membersBy Miranda Brownlee
- 23 May 2018Trail commissions ban would create ‘bigger conflict’, says licenseeBy Killian Plastow
- 23 May 2018‘Shut it down’: CPA members rail against troubled advice armBy Aleks Vickovich and Jotham Lian
- 23 May 2018Labor heavyweight concedes industry fund hypocrisyBy Aleks Vickovich and Jessica Yun
- view all