Sequoia Financial Group Ltd has admitted to unintentionally breaching ASX Listing Rule 15.7 after its CEO disclosed details of the InterPrac Financial Planning sale to a journalist during a trading halt. The company is reviewing its continuous disclosure practices to prevent future occurrences.
- CEO Garry Crole provided verbal information about InterPrac sale during trading halt
- Disclosure was not authorised or approved under Sequoia’s continuous disclosure policy
- Sequoia denies breach impacted market trading on an uninformed basis
- Board to review continuous disclosure policy and training at next meeting
- Sale of InterPrac to Conquest Investment Partners for $50,000 announced post-trading halt
Background to the Disclosure Incident
Sequoia Financial Group Ltd (ASX:SEQ) has responded to an ASX inquiry concerning a potential breach of Listing Rule 15.7 after its managing director and CEO, Garry Crole, provided information about the sale of its subsidiary InterPrac Financial Planning Pty Ltd to a journalist during a trading halt. The disclosure occurred on 20 March 2026, prior to the official announcement of the sale on 23 March 2026.
According to Sequoia’s response to the ASX, Mr Crole was contacted by a journalist from the Professional Planner around 2 p.m. on 20 March while the company was in a trading halt. During the conversation, Mr Crole corrected the journalist’s assumption about the potential buyer, naming the actual party with whom negotiations were underway. He also clarified that no agreement had yet been signed and expected an official announcement once the sale was finalised. The CEO was assured by the journalist that the information would not be published until after the trading halt was lifted and the announcement released.
Compliance and ASX Listing Rule Considerations
Sequoia acknowledged that this verbal disclosure was not authorised or approved in accordance with its continuous disclosure policy or by its board. The company explicitly stated that it does not consider the disclosure compliant with Listing Rule 15.7, which prohibits releasing market-sensitive information to any person before it is provided to the ASX and publicly released.
However, Sequoia noted that the market did not trade on an uninformed basis between the verbal disclosure and the official announcement. The company emphasised that the non-compliance was unintentional and occurred during a trading halt, which limited market activity.
Continuous Disclosure Policy and Future Steps
Sequoia outlined its continuous disclosure arrangements, including confidentiality obligations for officers, employees, and third parties, and procedures for assessing loss of confidentiality and considering trading halts. Following the ASX letter, the company distributed the correspondence to all directors and invited input on improving compliance.
The board has scheduled a review of the continuous disclosure policy and internal training as a specific agenda item for its next meeting on 29 April 2026. Sequoia committed to promptly informing the market of the outcomes and any measures implemented to strengthen compliance with Listing Rule 15.7.
Context of the InterPrac Sale
The sale of InterPrac Financial Planning Pty Ltd to Conquest Investment Partners Pty Ltd for $50,000 was publicly announced on 23 March 2026. This transaction followed a strategic review that revealed significant challenges within InterPrac, including asset write-downs and adviser losses. The sale aims to stabilise InterPrac under new ownership amid regulatory and commercial pressures.
This development came shortly after HUB24 halted new business from InterPrac advisers, prompting a strategic transition for Sequoia’s adviser network. The company also delayed its interim dividend amid uncertainties related to the InterPrac sale, reflecting the broader impact of this transaction on Sequoia’s operations and investor communications.
For further details on the sale and its implications, see Sequoia’s recent update on the sale of InterPrac amid mounting regulatory and commercial pressures.
Bottom Line?
Sequoia’s admission of an unintentional Listing Rule 15.7 breach highlights the challenges of managing sensitive disclosures during trading halts and underscores the importance of robust continuous disclosure controls.
Questions in the middle?
- How will Sequoia’s board address potential gaps in continuous disclosure training and policy enforcement?
- Could the ASX impose further regulatory scrutiny or sanctions following this disclosure incident?
- What impact might this episode have on investor confidence amid Sequoia’s ongoing strategic transition?