The Financial Planning Association (FPA) has begun its own investigation into 23 complaints received against FPA members linked with the Westpoint collapse.

The FPA’s professional standards unit is addressing the complaints with the members involved and will seek further information where needed before passing the information to the FPA Complaints and Disciplinary Committee for review and possible action.

Chairman Corinna Dieters says the committee’s decisions will be binding and the FPA will work towards investigating complaints against its members quickly.

Members in breach of their professional standards will face reprimands, possible expulsion and fines of up to $20,000.

“We will take action against conduct which runs counter to FPA standards and codes,” Ms Dieters said. “We support [the need for] consumer confidence to seek financial advice and protect the reputation of the vast majority of FPA members who do the right thing by their clients.”

She says many of the Westpoint investors acted through advisers not connected with the FPA. In some cases the advisers were not even licensed.

Ms Dieters says these investors have less protection, as the FPA cannot act on their behalf to take action against non-members.

Meanwhile the Australian Prudential Regulation Authority (APRA) has stood by its decision to not supervise mezzanine finance schemes such as Westpoint, which come under the disclosure-based regime overseen by the Australian Securities and Investments Commission.

APRA says its responsibility is to depositors of authorised banks, not self-managed superannuation funds, believing in the point of view that Australians could manage their own money.