Thousands of Australians caught up in the First Guardian and Shield collapse fear they may never see their money again after a financial planning company was sold for $200,000.
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company → catch → 200,000
About 12,000 people poured a total of $1billion from their superannuation into Shield and First Guardian before the funds collapsed amid allegations investors' money was misused.
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money → pour → allegations
More than half of them were clients of InterPrac Financial Planning, which was sold off to a newly registered company.
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which → sell → company
It was bought by Bellbird Australia, which was registered this week and is controlled by Scott Beeton, the founder and former chief executive of InterPrac's ASX-listed parent company Sequoia Financial.
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which → buy → company
The sale may have reduced some potential recovery avenues for Australians by severing a key financial link between InterPrac and the larger Sequoia group.
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sale → reduce → InterPrac
Sequoia confirmed after completing the sale that it had revoked a deed of cross guarantee covering InterPrac.
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it → confirm → InterPrac
'As the sale of Interprac has completed, Sequoia has revoked the deed of cross guarantee dated June 2, 2022 insofar as it relates to Interprac,' Sequoia told the market on Tuesday.
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Sequoia → complete → Tuesday
That means Sequoia and other subsidiaries will no longer be liable for InterPrac's obligations under the deed of cross guarantee, potentially affecting avenues of recovery available to claimants.
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Sequoia → mean → claimants
Thousands of investors caught up in the First Guardian and Shield collapse fear they may never see their money again after a financial planning company was sold for $200,000 (stock)
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company → catch → 200,000
In August, the Albanese government announced reforms to strengthen consumer protections
Investor advocate Melinda Kee said the sale had removed what she described as a crucial financial backstop for victims.
'
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she → announce → victims
It's an absolute disgrace,' she told the Daily Mail.
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she → tell → Mail
'Thousands of Australians have lost their retirement savings and, while they're fighting to get their money back, InterPrac has been sold to a company set up just days earlier for $200,000.'
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InterPrac → lose → 200,000
Ms Kee said it was particularly bad news for investors pursuing complaints through the Australian Financial Complaints Authority (AFCA) over advice to put their retirement savings into Shield and First Guardian.
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it → say → Shield
'Sequoia's shares go up 30 per cent while investors are left wondering who is going to pay their Australian Financial Complaints Authority claims,' she said.
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she → go → claims
Ms Kee said there were further issues that could be affected by the sale, including a legal battle between InterPrac and AFCA.
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that → say → InterPrac
InterPrac is suing the complaints authority over its handling of complaints relating to Shield and First Guardian.
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InterPrac → sue → Shield
'What happens to the court case against AFCA now?' Ms Kee said.
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Kee → happen → AFCA
Bellbird Australia, controlled by Scott Beeton (pictured), bought InterPrac Financial Planning.
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Australia → control → Planning
More than 6,000 of InterPrac's clients were caught in the collapse of Shield and First Guardian
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6,000 → catch → Shield
Ms Kee also questioned whether investors had lost their best chance of recovering amounts above the Compensation Scheme of Last Resort's $150,000 cap.
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investors → question → cap
The scheme can compensate eligible consumers when certain unpaid AFCA decisions meet the scheme's requirements, but compensation is capped at $150,000 per eligible claim.
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compensation → compensate → claim
Ms Kee said the scheme was already at breaking point and currently had no money available to pay claims for the remainder of the financial year.
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scheme → say → year
That leaves investors who lost more questioning whether the removal of Sequoia's guarantee has cost them their best chance of recovering amounts above the cap.
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removal → leave → cap
'ASIC stepped in to stop this happening earlier in the year.
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this → step → year
So how has it been allowed to happen now?' Ms Kee added.
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Kee → allow → ?
'Investors have been let down enough.
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Investors → let → ?
We need answers, not another corporate deal that leaves victims paying the price.
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that → need → price
ASIC intervened over an earlier attempt to sell InterPrac when, earlier this year, Sequoia proposed selling the licensee to Conquest Investment Partners for just $50,000.
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Sequoia → intervene → 50,000
ASIC commenced Federal Court proceedings in April amid concerns about InterPrac's creditors and sought the appointment of a receiver to investigate the proposed sale.
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ASIC → commence → sale
Investor advocate Melinda Kee (pictured) said the sale had removed a crucial financial backstop for victims and was an 'absolute disgrace'
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sale → picture → victims
The regulator said it feared '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'.
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Sequoia → say → Conquest
Now InterPrac has been sold for four times that amount to Bellbird.
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InterPrac → sell → Bellbird
An ASIC spokesperson confirmed to the Daily Mail that the regulator was aware of Sequoia's announcement and was 'closely scrutinising' the transaction.
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regulator → confirm → transaction
The Daily Mail has contacted InterPrac and Mr Beeton for comment.
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Mail → contact → comment
Sequoia declined to provide a statement beyond what is in the ASX market announcement.
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what → decline → announcement
Meanwhile, ASIC is already suing InterPrac over its role in the First Guardian and Shield collapse.
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ASIC → sue → collapse
ASIC's civil penalty case, filed on November 13, 2025, alleges InterPrac failed to ensure former authorised representatives Venture Egg and Rhys Reilly Pty Ltd complied with their best interests obligations.
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Egg → file → obligations
ASIC says the two advised more than 6800 clients to invest about $677million of their super in Shield and First Guardian.
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two → say → Shield
The regulator is seeking declarations, civil penalties and orders restraining InterPrac from carrying on a financial services business.
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regulator → seek → business
The matter is listed for case management on April 9, 2027.
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matter → list → April
…and 3 more, not listed.
The Aporia
