Sequoia Financial Group, the owner of troubled InterPrac Financial Planning, has backtracked on plans to end its cross-guarantee between its three subsidiary licensees after pressure from the corporate regulator.
Last week, Sequoia revealed in its half-year results last week that it had entered the revocation deed on 12 September 2025 that would release InterPrac, Sequoia Asset Management and Sequoia Wealth Management from a deed of cross guarantee.
But in an announcement to the ASX on Monday morning, Sequoia said it had “agreed with ASIC” to withdraw the revocation deed.
“Sequoia confirms that the release of subsidiaries from the deed of cross guarantee as outlined in its interim report will no longer take place,” a spokesperson told Professional Planner.
ASIC declined to comment when asked for details about the arrangement.
A deed of cross guarantee meant the other entities could be on the hook for potential liabilities from InterPrac.
A spokesperson from Sequoia last week declined to confirm whether the end of the cross guarantee was part of a plan to close down the InterPrac licensee to avoid paying out any liabilities in the aftermath of the Shield and First Guardian collapse.
Sequoia denied last year that it was transferring advisers out of its licensee with the intention of avoiding mounting liabilities from the collapse of the Shield and First Guardian master funds. The firm had previously placed the Libertas licensee into voluntary administration which saw an AFCA claim go to the Compensation Scheme of Last Resort.
ASIC Commissioner Alan Kirkland told the Professional Planner Advice Policy Summit last week that the regulator will rely on the courts to decide whether InterPrac should have an AFSL as it seeks to restrain the licensee from carrying on any financial services business.
The regulator is suing InterPrac for failing to have proper oversight over the advisers involved in distributing the Shield and First Guardian funds.
The company told investors during its half-year results that a review of the InterPrac business model had commenced which would “strengthen governance, enhance compliance frameworks and develop a higher-return model” which will be completed by June 2026.
Former ASIC Commissioner Danielle Press was appointed last year to lead a dedicated governance committee for Sequoia Financial Group, due to the fallout of the Shield and First Guardian collapse.
According to figures from Padua Wealth Data released last Thursday, Sequoia has lost 65 advisers over the past six months.
The regulator has taken former InterPrac financial adviser Ferras Merhi to court over allegations he received money from the funds to help market them and received inflated loans from the fund to help purchase his businesses.
ASIC has alleged Merhi was responsible for signing more than 6000 Statements of Advice within a three-year period.
Around 12,000 investors are implicated in the Shield and First Guardian collapse. ASIC acted on the funds over concerns investor money was being misused on high-risk investments, pet projects of the directors and personal expenses.
