The Australian Securities and Investments Commission (ASIC) has settled a Federal Court class action against a Queensland financial firm over advice given to investors in Westpoint.

The settlement allows the clients of Professional Investment Services to recoup some of their investment in the collapsed property group. It was reached with no admission of liability by the firm.

ASIC launched legal action against the company in December 2007 alleging the firm was negligent and breached the conditions of its Australian financial services licence.

Once it receives court approval, the case will be the second settlement ASIC has reached on behalf of Westpoint investors against an Australian financial services licensee.

In November last year ASIC secured a confidential settlement on behalf of investors against Masu Financial Management.

ASIC continues to mediate other claims following the undisclosed settlement, including directors of Westpoint companies and auditors KPMG.

“ASIC expects to make further announcements in the near future,” ASIC Chairman Tony D’Aloisio said.