Sequoia Weighs Sale of InterPrac Amid Platform Provider Reassessments

Strategic Review in Response to Industry Shifts

Sequoia Financial Group has confirmed it is deep into a strategic review of its retail licensee services, with a particular focus on its wholly owned subsidiary, InterPrac Financial Planning. InterPrac, which has provided Australian Financial Services Licence (AFSL) services to retail financial advisers for around two decades, now finds itself at the centre of a reassessment prompted by evolving relationships with investment platform providers.

Following earlier decisions by major players like Macquarie Group and Netwealth Group Limited to review or alter their arrangements with Sequoia-owned AFSLs, other platform providers have also begun reconsidering their partnerships. This industry-wide scrutiny has compelled Sequoia’s board and management to evaluate the best long-term structure for InterPrac and its network of authorised representatives.

Exploring Strategic Options

Sequoia is actively considering a range of strategic pathways. These include continuing InterPrac’s operations under revised terms, facilitating the transition of advisers to alternative licensing structures, or potentially divesting the InterPrac business or its shares. The company has disclosed it is engaged in advanced discussions with a third party regarding a possible transaction, though no certainty exists that these talks will culminate in an agreement.

Should a sale proceed, it will be contingent on shareholder approval in line with ASX Listing Rules, underscoring the regulatory oversight and governance standards involved. Meanwhile, Sequoia is committed to supporting its authorised representatives throughout this period, ensuring continuity of service for clients and offering assistance for advisers seeking to establish their own AFSLs or move to other licensees.

Maintaining Compliance and Market Confidence

Throughout the review, entities within the Sequoia group, including Acacia Compliance Services, continue to provide vital licensing support and compliance services. InterPrac remains cooperative with relevant regulatory processes, signalling the company’s intent to maintain transparency and uphold its continuous disclosure obligations.

This strategic review reflects broader shifts in the financial planning sector, where platform providers are reassessing their partnerships amid changing market dynamics and regulatory expectations. Sequoia’s approach balances the need for operational stability with the flexibility to adapt its business model in response to these external pressures.