A statement from the Jersey Financial Services Commission (JFSC) confirmed that Byrne had been arrested on 7 October “in connection with the current investigation regarding Lumiere Wealth”.
The regulator advised that it has been working closely with the Joint Financial Crime Unit on the matter.
Due to the on-going nature of the investigation, JFSC said that no further statement will be made at this stage.
Byrne left the IFA firm in June “due to ill health”, the company confirmed when contacted by International Adviser at that time.
According to local Jersey newspaper Bailiwick Express, Byrne has been charged with a £1m ($1.2m, €1.1m) fraud and denied bail, as he was deemed a flight risk after having bought a one-way ticket to Luton.
He appeared before the Magistrate’s Court on Monday for allegedly defrauding a 77-year-old widow earlier this year.
Prosecuting advocate Jan Brewer said Byrne, who has lived in Jersey for 27 years, is now separated from his wife and has no ties to the island. She said further investigations are ongoing and there were concerns he would fail to answer bail and could commit offences such as contacting witnesses.
Defence Advocate Lauren Glynn said she hadn't seen any evidence of a one-way ticket booked and that Byrne, who is no longer working in the financial services industry, had told her he was booked on a one-week's marketing course in Australia and was due to return to the island on 20 October to go to one of his children's parents' evenings at school.
Byrne will next appear before the court on 7 November.
Wind up order
Lumiere Wealth was ordered to be wound up on 4 October after a hearing held by the Jersey Royal Court.
In a statement at the time, the JFSC said it was "aware of the Royal Court hearing on Tuesday 4 October 2016 regarding the winding up of Lumiere Wealth Limited and the application to appoint Andy Isham and Alex Adam of Deliotte LLP as Joint Liquidators”.
Lumiere Wealth's website was taken down on 4 October and replaced with a liquidation notice.
It reads: "An application was made by the directors of Lumiere Wealth Limited to wind the company up on just and equitable grounds.
"On 4 October 2016, the Royal Court of Jersey duly ordered that the Company should be wound up under Article 155 of the Companies (Jersey) Law (as amended).
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