The state government in Victoria is to work to support investors affected by the collapse of Banksia Securities.
A group headed by Deputy Premier Peter Ryan will be set up to help Banksia customers.
Banksia went into receivership last Thursday owing more than $A660 million.
The ABC reports many of the investors are from rural Victoria. Banksia has branches in Bendigo, Ballarat, Geelong, Warrnambool, Kyabram, Echuca, Shepparton and Tatura.
The receivers have frozen all money and interest payments.
Meanwhile, Deakin University head of accounting Graeme Wines has questioned how Banksia issued a financial report indicating the company was in good health, one month before it collapsed.
On 27 September, the company issued the report stating it would be able to pay its debts. A month later, the company collapsed.
Mr Wines said the directors and auditors must explain how the finances deteriorated so rapidly.