The dealer group has been forced to call in ASIC and the police following an internal investigation.
Dealer group Financial Planning Services Australia (FPSA) has been forced to call in ASIC and the police after an internal investigation uncovered a series of "irregularities" by one of its now former authorised representatives.
FPSA director Michael Heine said the company's investigation into its member firm, 360 Asset Management, had ended with ASIC cancelling the firm's Australian financial services licence.
"We have undertaken an internal investigation and have also involved ASIC and the police. I can only say we have uncovered what appears to be significant irregularities," Heine said.
"There were significant irregularities in the operations of that business, which is licensed to FPSA, and after appropriate enquiries we terminated all the authorised representative status of 360 [Asset Management] and the company, which is not to say there has been irregularities by all those parties, but to date we've certainly uncovered significant irregularities in the operations of one of those advisers."
Three authorised representatives had their status cancelled with the group, he said.
Heine would not make any further comment on the specifics of any investigation.
He said no client accounts had been frozen and no irregularities had spread to FPSA or its associated wrap business, netwealth Investments.
"We haven't frozen any accounts but obviously all the accounts at that company cease to have authorised representatives or advisers attached to them," he said.
"There are no irregularities in respect of their [the 360 Asset Management client] wrap accounts that we have identified or that clients have brought to our attention.
"So there are no irregularities in relation to any accounts that clients hold with netwealth."
Heine could not comment on how many clients 360 Asset Management had on its books, but said the clients were now without financial advice.
"From our point of view we have spoken with individual clients but there has been no further mass communication from our perspective but there may have been from authorities," he said.
"We've certainly communicated with all our major clients in netwealth to advise them there has been no irregularities within the platform.
"There has been no inappropriate access to clients' funds or accounts and we've also obviously communicated with other members of the dealer group to advise them in similar terms as to what we've advised the clients."
It is understood the authorised representative under question is a member of the FPA.
Commenting on whether the FPA would step in and launch its own investigation into the activities of 360 Asset Management, an FPA spokesperson said: "We haven't received notice from ASIC on which to act."
"We will investigate and take the appropriate action if required."
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