ASIC ‘best interests’ case gets support of law firm

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.

It is ASIC’s first proceedings against a licensee for breaching the ‘best interests duty’ under the new FOFA reforms.

Slater and Gordon senior associate James Naughton said it was a significant case that would determine how 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.