It is understood Britain's Financial Services Authority (FSA) is to ask police to investigate alleged financial irregularities at Irish headquartered company WorldSpreads.
The company entered administration on Sunday following suspected misuse of client funds.
KPMG has been appointed as administrators and has warned there is likely to be a shortfall to creditors.
In a statement yesterday, former WorldSpreads CEO Conor Foley said his decision to step down was unconnected with the irregularities.
He said he had been in the process of handing over to a new CEO last Friday when the issues were discovered.
