Australian Careers Network shares are tanking

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Shares in Australian Careers Network fell more than 10% after the federal education department was ordered to investigate one of its training providers in Melbourne.

Federal education minister Simon Birmingham has asked his department to consider removing the Phoenix Institute, a subsidiary of the careers network, as a VET FEE-HELP education provider.

“I have asked the Australian Skills Quality Authority (ASQA) to conclude as fast as they reasonably can, their investigations into this training provider and to consider, as part of those investigations, suspending or revoking their license to operate as a training provider,” he says.

The Phoenix Institute was acquired in January by Australian Careers Network for $2.25 million.

A report in Fairfax Media said a sales person allegedly tried to sign a couple with intellectual disabilities to a business diploma.

In a statement, the Australian Careers Network said it regularly receives applications for enrollment of students from third-party student brokers

The company said: “In this instance, the student was canvased by a broker, failed to pass Phoenix’s pre-enrollment checks, and as confirmed in the video accompanying the article, was not enrolled in any course as that application was not accepted by Phoenix.”

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