Austbrokers Canberra MD Greg Johnston has been “removed” by parent company AUB over allegations of financial misconduct.

In a statement to the Australian Securities Exchange today, AUB says the alleged misconduct was identified during an internal investigation.

“Remedial action is being taken to address the misconduct and the relevant authorities, [and] regulators and the affected client have been notified,” the statement says.

External advisers have been engaged to assist in the ongoing internal investigation. AUB says it does not believe the impact of the matter will be material.

When contacted by insuranceNEWS.com.au, AUB issued a further statement but would not respond to questions about the nature and scale of the alleged misconduct.

“Misconduct by Greg Johnston has been identified by Austbrokers Canberra Pty Limited,” the statement says.

“AUB Group has removed him as managing director and as a director of the board, notified authorities, put in place measures to ensure continuity of client service, engaged external advisers and commenced an internal investigation.

“AUB Group and Austbrokers Canberra are fully co-operating with the authorities on this matter, and will not be making any further comment while this investigation is under way.”

It is believed that an interim CEO has been appointed to lead Austbrokers Canberra.

Mr Johnston founded the business in January 2007. His LinkedIn account says the business has evolved from a staff of 12 to become a “major operator” in the general insurance market, with 40 staff across four offices in Canberra, Sydney, Perth and the UK.

The business is understood to have more than 10,000 clients and turnover in excess of $50 million.