Sequoia Subsidiary Faces Legal Risk Amid ASIC’s Civil Penalty Action
Sequoia Financial Group’s subsidiary InterPrac Financial Planning faces ASIC civil penalty proceedings over past investment advice but plans a robust defence.
- ASIC initiates civil penalty proceedings against InterPrac
- Allegations relate to historical investment recommendations in Shield and First Guardian Master Funds
- InterPrac’s former authorised representatives implicated, now ceased
- InterPrac asserts compliance with Corporations Act and intends to defend vigorously
- Current operations and client services remain unaffected
Background of the Proceedings
Sequoia Financial Group Limited (ASX, SEQ) has disclosed that its wholly owned subsidiary, InterPrac Financial Planning Pty Ltd, is facing civil penalty proceedings initiated by the Australian Securities and Investments Commission (ASIC). The legal action concerns alleged historical misconduct by certain former authorised representatives who recommended investments in the Shield Master Fund and First Guardian Master Fund through approved superannuation platforms.
InterPrac’s Response and Position
After reviewing ASIC’s Statement of Claim, InterPrac has announced its intention to vigorously defend the allegations. The company maintains that it has acted in accordance with its obligations under the Corporations Act. Importantly, the representatives involved have ceased their authorised roles with InterPrac during 2025, distancing current operations from the historical conduct under scrutiny.
Impact on Clients and Operations
Sequoia’s Managing Director and CEO, Garry Crole, emphasised the company’s commitment to client interests and compliance governance. While acknowledging the impact on clients affected by the external investment product failures, he highlighted InterPrac’s full cooperation with ASIC’s investigation. The company reassures stakeholders that these proceedings relate solely to past events and do not affect InterPrac’s ongoing operations, current authorised representatives, or its ability to provide financial services.
Looking Ahead
InterPrac will continue to support its advisers and collaborate with the trustees of the relevant funds where appropriate. Sequoia has pledged to keep the market informed in line with continuous disclosure obligations, signaling transparency as the legal process unfolds. The outcome of these proceedings could have broader implications for regulatory oversight and compliance standards within the financial planning sector.
Bottom Line?
As InterPrac prepares to defend itself, investors will watch closely for how this legal challenge shapes the company’s regulatory standing and client trust.
Questions in the middle?
- What specific penalties or remedies is ASIC seeking against InterPrac?
- How might this case influence regulatory scrutiny of financial planning firms?
- Could this legal action impact Sequoia’s financial performance or reputation long-term?
