Lawyers pounce on ASIC ‘best interests’ action
Plaintive law firm, Slater and Gordon, has sought to buy into the Australian Securities and Investments Commission's (ASIC's) "best interests" action against NSG Financial Services Group.
The law firm has made a public call for clients of NSG to come forward so that the legal firm can investigate whether they are entitled to compensation.
ASIC's legal action against NSG is regarded as a test of the best interests duty contained within the Future of Financial Advice (FOFA) legislation.
Slater and Gordon associate, James Naughton, described the ASIC action as a significant case that would determine how courts dealt with the new provision.
"This is an important development for consumers who may have claims against their financial adviser for the provision of poor financial advice," he said.
ASIC announced its pursuit of NSG earlier this month, alleging that the advisory group 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.
Naughton said Slater and Gordon was currently investigating whether the conduct of NSG might give rise to compensation claims to those who received their financial advice.
"Consumers who have received advice from NSG or its representatives, Mustafa Ozak and Van Trinh, are encouraged to consider their legal rights and options," he said.
"The proceedings brought by ASIC seek civil penalties against the licensee, however affected consumers may also be entitled to compensation."
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