The FPA is investigating nine complaints against a number of its members over financial advice regarding the Astarra Strategic Fund (ASF).
The advice association revealed limited details of its investigations in its submission to the Parliamentary Joint Commission on Corporations and Financial Services Inquiry into the collapse of Trio Capital and any other related matters.
"The FPA is investigating nine complaints against four members regarding recommendations in the [ASF]," the submission said.
"These four investigations are ongoing, therefore in adherence to natural justice principles we cannot provide written details, but would be available to discuss these separately if required."
The FPA said during its investigations into Trio it had gained "substantial insights" into the ASF and the advice provided.
"Further, it should be noted that there were clear inadequacies in the advice circumstances as well as warning signs that should have triggered concerns by the financial planner(s)," the association said.
"We therefore feel suitably informed to highlight these warning signs."
As part of its investigations, the FPA found, among other things, that Trio products provided frequent redemptions, which the association believed "is abnormal for hedge funds as they are a very illiquid product".
The association found the ASF had a "very wide and flexible investment mandate" and provided little clarity around its investment strategies' bias.
"This lack of transparency and the multitude of investment options provided great scope for ASF management to justify their investment returns and should have raised concerns about the products' risks," the submission said.
"The [ASF] frequently alleged changes to their investments, which should warrant deeper investigations. This was probably done to justify their investment performance and is dependent on the movement of market variables."
The association also claimed the ASF offered advance commission payments to licensees, "which is not either an accepted or common practice within Australia's advice industry".
"The FPA recommends better processes for detecting and reporting concerns of high and abnormal risks of products and providers are needed across all financial services participants and gatekeepers to minimise the risks for consumers," it said.
