The Federal Court has imposed a $1 million civil penalty on NSG Services for breaching the best-interests duty under the Future of Financial Advice reforms.

The Melbourne-based financial advice business failed to ensure its representatives complied with regulations when selling insurance and providing superannuation advice on eight occasions between July 2013 and August 2015.

Their actions committed clients to “costly, unsuitable and unnecessary financial arrangements”, the Australian Securities and Investments Commission says.

The regulator started proceedings last year against the business, now known as Golden Financial Group.

“This outcome makes clear to the industry the serious consequences of financial services licensees failing to comply with their [Future of Financial Advice] obligations,” commission Deputy Chairman Peter Kell said.

NSG will pay $50,000 in costs to the regulator, and another $50,000 towards its expenses investigating the case.