"It was very much about learning how to deal with outside influences and get things back on track. A lot of behavioural stuff, like how to mirror people and act like a counsellor to get them over the line."

Mr Romano had joined the firm believing its training program would support him in gaining his Diploma of Financial Planning, also known as the RG146 certificate. But trainees were told to complete the formal qualification in their own time.

Focus on risk products

ASIC has alleged that National Sterling provided improper training and instructed staff to always try to sell life insurance to clients regardless of their personal circumstances.

"There was certainly a focus on risk products, and at the end of the day there were targets to be met," Mr Romano said.

ASIC's case against NSG Services, formerly National Sterling Group, is the first time the regulator has taken action against an Australian Financial Services Licence (AFSL) holder for breaching the "best interests" duty introduced as part of the Future of Financial Advice (FOFA) reforms that came into law on July 1, 2013.

Penalties of up to $200,000 can be ordered by the court in each instance where a breach is found to have been made, meaning NSG Services could face fines of up to $1.6 million if found guilty on all eight counts brought against it by ASIC.

Also operating out of the same offices in Melbourne and Adelaide as National Sterling Group and NSG Services are companies registered as iProsper Financial Planning, iProsper Investments, and TT South Road.


One of National Sterling's executive directors and head of NSG Services Antonio "Tony" Tzouvelis has a profile on a social networking site for Scientologists that reads: "I am in business and I like to win – Scientology helps me to win."

A page on National Sterling's website that listed Mr Tzouvelis as one of its executive directors and head of NSG Services has been removed in recent days. Mr Tzouvelis has also been registered with ASIC as a director of iProsper and TT South Rd.

A spokeswoman for the Melbourne branch of the Church of Scientology said: "Mr Tzouvelis has no position in the Church of Scientology and the Church has no involvement in the matter before the Court."

'It felt like cold calling'

NSG Services and Mr Tzouvelis declined to comment.

As a National Sterling trainee Mr Romano was put to work telephoning potential clients to arrange appointments for a planner to visit them in their homes.

"Most of the referrals came from H & R Block," Mr Romano said.

"It felt like cold calling but they told us that H & R Block had sent a letter ahead to their clients first to tell them a third party would be contacting them so it wasn't."


H & R Block managing director Brodie Dixon said the tax accounting firm was recently made aware of the action brought by ASIC against National Sterling Group (NSG Services) and had halted referring clients to the group or any other third party.

"H & R Block is committed to upholding the highest standards of compliance on behalf of our clients," Mr Dixon said.

However, Mr Dixon declined to answer questions about whether H & R Block had been aware of its former referral partner's training and sales techniques, or clarify how referral fees had been structured.

Do you know more? Contact sally.rose@fairfaxmedia.com.au