TailorMade, a UK distributor of investments in Harlequin Property, has said it stopped taking new money into the overseas property scheme in January following a Financial Services Authority (FSA) alert about Harlequin.
TailorMade has an advice arm, an alternative investment business and self-invested person pension (SIPP).
IFAonline understands the firm's IFA arm has been advising clients to invest in Harlequin properties through TailorMade's SIPP, but the company would not disclose how many pension transfers it had done.
In a statement, TailorMade said that, until Jan 2012 - when the FSA issued its alert to financial advisers about investing clients money in Caribbean property through Harlequin - it was one of "the hundreds of worldwide distributors of Harlequin investments".
It continued:"However, with so many outstanding enquiries and allegations to be resolved, TailorMade Alternative Investments no longer views Harlequin as an appropriate investment."
Harlequin Property has been dogged by problems in recent months.
Last week, the Serious Fraud Office (SFO) launched a joint investigation with Essex Police into complaints relating to the Harlequin group.
The SFO has opened an online questionnaire asking investors for details about their investments and who introduced them to the group.
IFAonline revealed two weeks ago that Harlequin is having "severe" problems issuing payments due under the terms of its agreement, with some investors having payments missed for the second consecutive month.
Under the terms of its agreements with investors, Harlequin pays the interest on borrowings where investors have re-mortgaged their homes to invest in a Harlequin property in the Caribbean.
The interest is supposed to be paid until the completion of the off-plan property the investor has invested in.
The FSA has also contacted SIPP providers asking them for details of members' holdings in Harlequin.
Has been cold-calling consumers
New shares admitted to London Stock Exchange
Slow and steady growth
Missed funding target by £240,000
Denies any wrongdoing