A group of investors who received information from New Zealand financial advisory firm Vestar are to take legal action against the firm claiming they invested millions in troubled companies, according to the NZPA news service.

Vestar is owned by ASX-listed Octaviar group but its business is to be transferred to Christchurch investment company Gould Wealth Management, according to separate media reports.

A group of 45 investors said they want to sue their former financial advisors, the directors and investment committee for giving poor advice and tying up millions of dollars in finance companies which have since gone into receivership or moratorium.

The six troubled finance companies recommended to the investors included Bridgecorp, Capital & Merchant, OPI Pacific Finance, MFS Boston Finance, St Laurence and Property Finance.