Financial planners could find themselves in the firing line yet again following the collapse of another financial services firm.
The FPA has opened its own line of inquiry into the collapse of financial services firm Sonray Capital Markets in a bid to monitor the exposure to Australia's financial planning sector.
FPA acting chief executive Deen Sanders said while the company is not a member of the association, the inquiry hopes to gain further information into the circumstances behind Sonray freezing 3000 client accounts and the company board calling in administrators.
"At this stage I can only confirm that they are not a member of the FPA as an organisation, but we are openly inquiring as to the circumstances of the action," Sanders said.
He said the association has held discussions with ASIC regarding Sonray, however Sanders was unable to reveal any specific details.
"I can't confirm specifically about this one because that would imply that they are members. They are not members," he said.
"I can assure you that our lines of communication are open on the issue with ASIC, but at this stage we're just looking into the issue in terms of its potential exposure to financial planning."
The FPA's decision to monitor Sonray has not been prompted by concerns or complaints from investors, Sanders said.
The Financial Ombudsman Service also has not received any complaints from investors regarding Sonray.
On Tuesday evening, Sonray board members appointed Ferrier Hodgson partners George Georges and John Lindholm as voluntary administrators.
Early investigations by Georges and Lindholm have indicated a large portion of the 3000 client accounts are made up of retail investors, a statement from company administrators said.
Sonray companies included in the administration are Sonray Capital Markets Pty Ltd, Sonray Capital Markets (Qld) Pty Ltd, Sonray Capital Markets Nominees Pty Ltd and Sonray Advisory Pty Ltd.
The Sonray business has operated since 2003 and employs about 70 people in offices in Melbourne and on the Gold Coast.
Georges said a creditors meeting will be held in the next week.
The two non-consecutive alphabetic letters encountered most often last week caused more controversy than the underlying policy they represented, Wouter Klijn writes.... read more »
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