ASIC seeks appointment of receiver to investigate proposed sale of Interprac Financial Planning
Summary
ASIC has commenced Federal Court proceedings seeking appointment of a receiver to investigate the proposed $50,000 sale of Interprac Financial Planning Pty Ltd by Sequoia Wealth Group to Conquest Investment Partners. The regulator is concerned the sale may adversely affect creditors, including approximately 911 open AFCA complaints related to collapsed Shield and First Guardian Master Funds. ASIC seeks to investigate whether the sale is bona fide and Interprac's solvency before Sequoia is released from cross-guarantee obligations.
What changed
ASIC has filed Federal Court proceedings seeking appointment of a receiver to investigate the sale of Interprac Financial Planning to Conquest Investment Partners for only $50,000. The receiver would investigate whether the sale is bona fide, fair, and reasonable, and report on Interprac's financial position and solvency. ASIC is concerned that completion of the sale would release Sequoia and other Group Entities from Deed of Cross-Guarantee obligations, potentially leaving creditors—including those with AFCA complaints related to Shield and First Guardian Master Funds—without recourse. This follows ASIC's November 2025 civil penalty proceedings against Interprac for alleged failures to ensure compliance with best interests obligations by its former representatives.
The implications for affected parties are significant. Sequoia Financial (ASX-listed) may seek to avoid guarantor obligations through the sale mechanism. Approximately 6,843 clients who invested around $677 million in superannuation through advice from Interprac's former representatives face potential recovery limitations. Financial advisers and licensees should note ASIC's continued enforcement focus on best interests obligations and adequate risk management systems, particularly where corporate structures may be used to shield entities from liability following regulatory scrutiny.
What to do next
- Monitor ASIC's dedicated Shield and First Guardian Master Fund webpages for updates
- Financial advisers with exposure to affected funds should review client communication obligations
- Review internal compliance systems for best interests obligations and risk management
Penalties
Civil penalty proceedings ongoing against Interprac seeking declarations, civil penalties, and orders restraining Interprac from carrying on a financial services business. AFCA has issued two lead determinations against Interprac. Approximately 911 open AFCA complaints exist in relation to advice to invest in collapsed funds involving approximately $677 million of client superannuation.
Source document (simplified)
Print Share ASIC has commenced Federal Court proceedings seeking the appointment of a receiver to investigate a proposed sale of Interprac Financial Planning Pty Ltd (Interprac) by Sequoia Wealth Group Pty Ltd (Sequoia Wealth), a wholly owned subsidiary of ASX-listed Sequoia Financial Group (Sequoia Financial).
Sequoia Wealth entered into a Share Sale Agreement to sell 100% of its shares in Interprac to Conquest Investment Partners Pty Ltd (Conquest) in March 2026 for $50,000.
If appointed by the Court, the receiver will:
- investigate and report on whether the sale of Interprac’s shares by Sequoia Wealth to Conquest is bona fide, fair and reasonable, and
- report on Interprac’s financial position and its solvency. ASIC is bringing this application out of concern that the intended sale of Interprac may adversely affect the interests of its creditors, including Interprac’s liabilities arising from AFCA complaints in relation to the Shield Master Fund and First Guardian Master Fund, given that Sequoia may cease to guarantee Interprac’s debts upon completion of the sale to Conquest.
To date, AFCA has made two lead determinations against Interprac. There are approximately 911 open AFCA complaints against Interprac in relation to advice provided by its representatives to invest in the collapsed Shield and First Guardian Master Funds.
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Background
- On 25 May 2022, Sequoia Financial, Sequoia Wealth and Interprac (and other “Group Entities”) entered into a Deed of Cross Guarantee whereby each of the Group Entities guaranteed the debts of the other Group Entities in the event of a winding up on certain grounds. If the proposed sale of Interprac proceeds, and the directors of Sequoia Financial certify that the sale is bona fide and the consideration payable is reasonable, then Sequoia and the other Group Entities will be released from their obligations under the Deed of Cross-Guarantee.
- In November 2025, ASIC commenced civil penalty proceedings against Interprac for allegedly failing to ensure its former authorised representatives, Venture Egg (a corporate partnership), and Rhys Reilly Pty Ltd (together, Representatives), complied with the best interests obligations and for failing to have adequate risk management systems (25-274MR). Together, these Representatives advised around 6,843 clients to invest around $677 million of their superannuation into Shield and First Guardian. In that proceeding, ASIC is seeking declarations, civil penalties, and orders to restrain Interprac from carrying on a financial services business.
Consumer information
Stay Updated: ASIC will post important updates on its dedicated webpages: Shield Master Fund and the First Guardian Master Fund.
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