Law firm Slater & Gordon has offered to act for clients seeking compensation over advice from NSG Financial Services.

This month the Australian Securities and Investments Commission (ASIC) began legal action against the dealer group for not acting in clients’ best interests when selling life insurance.

It is the first time the best-interests duty has been tested in the courts.

Slater & Gordon Senior Associate James Naughton says it is a landmark action that will determine how the courts deal with the best-interests requirement.

“This is an important development for consumers who may have claims against their financial adviser for the provision of poor financial advice,” he said.

“Slater & Gordon is currently investigating whether the conduct of NSG will lead to compensation claims to those who received its financial advice.”

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

“Consumers who have received advice from NSG or its representatives Mustafa Ozak and Van Trinh are encouraged to consider their legal rights and options,” Mr Naughton said.

“The proceedings brought by ASIC seek civil penalties against the licensee. However, affected consumers may also be entitled to compensation.”

The ASIC case’s first hearing is on July 8 at the Federal Court in Melbourne.