Law firm supports ASIC ‘best interests’ case

According to a statement, ASIC launched court proceedings against NSG Financial Services for alleged breaches of the 'best interests duty'.

ASIC alleges NSG failed to take reasonable steps to ensure its advisers complied with their obligations, did not deliver appropriate training to its advisers, pushed unnecessary products and did not provide compliance and risk management policies, the statement said.

This is ASIC's first proceedings against a licensee for breaching the 'best interests duty' under the FOFA reforms.

Slater and Gordon senior associate James Naughton said it is a significant case that will determine how the courts deal with the new provisions.

"Slater and Gordon is currently investigating whether the conduct of NSG will lead to compensation claims to those who received their financial advice," Mr Naughton said.

"Consumers who have received advice from NSG or its representatives Mustafa Ozak and Van Trinh are encouraged to consider their legal rights and options."

The first hearing of the matter will take place on 8 July in the Federal Court in Melbourne, the statement said.