Melbourne-based financial planning firm Glenhurst Corporation has gone into administration.
A creditors meeting is due to be held today at the offices of the administrator, CJL Partners.
Glenhurst chief executive officer Tony Kofkin would not comment on the move, only confirming that the company was in administration.
He did confirm Glenhurst would be surrendering its Financial Services Reform licence shortly.
According to the Australian Securities and Investments Commission (ASIC) website, there were no authorised representatives on the licence, which was first granted in 2000.
Kofkin has been in the financial planning industry for many years, starting the company in 1991 as a National Mutual agent.
The dealer group became a multi-agent business with 20 advisers in 2000, managing $100 million in funds under advice.
By 2004, Glenhurst had grown to $1.6 billion in funds under advice and had 10,000 clients.
In recent months, Glenhurst has been named as a dealer group involved in selling Westpoint products and was facing a number of claims that were being dealt with by the Financial Industry Complaints Service.
It was also included in ASIC’s action against a number of dealer groups, which alleged that in selling Westpoint products the licensees “did not comply with their obligations under the conditions of their Australian Financial Services licences and under the law”.