The Australian Securities and Investments Commission (ASIC) has stepped in to to prevent an ASX-listed financial services firm from escaping potential liabilities to investors who lost A$1 billion-plus in the collapse of the Shield and First Guardian master funds.
Australia’s corporate regulator has taken legal action over Sequoia Financial Group’s planned sale of Interprac Financial Planning Pty Ltd to Conquest Investment Partners Pty Ltd, which was announced in March 2026 for $50,000.
ASIC has commenced Federal Court proceedings seeking the appointment of a receiver to investigate and report on whether the sale was bona fide, fair and reasonable and to report on Interprac’s financial position and its solvency.
ASIC was concerned that the sale may adversely affect the interests of creditors, including Interprac’s liabilities arising from complaints to the Australian Financial Complaints Authority (AFCA) in relation to Shield and First Guardian, given that Sequoia may cease to guarantee Interprac’s debts upon completion of the sale to Conquest.
AFCA has made two lead determinations against Interprac, and another 911 complaints are open in relation to advice provided by its representatives to invest in the collapsed funds.
In November 2025, ASIC commenced civil penalty proceedings against Interprac for allegedly failing to ensure its former authorised representatives, corporate partnership Venture Egg and Rhys Reilly Pty Ltd, complied with the best interests obligations and for failing to have adequate risk management systems.
These representatives advised 6,843 clients to invest about $677 million of their superannuation into Shield and First Guardian.
Sequoia shares (ASX: SEQ) last traded at 25 cents, capitalising the company at $26.35 million, before being suspended on Wednesday pending the release of an announcement to the Australian Securities Exchange (ASX).
