Sequoia Financial Group (ASX: SEQ) has announced that its subsidiary, InterPrac Financial Planning, has commenced Federal Court proceedings against the Australian Financial Complaints Authority (AFCA). The action, filed on 10 March 2026, challenges AFCA’s final determination published on 24 December 2025 concerning complaints about advice provided by an InterPrac authorised representative relating to the Shield Master Fund.
InterPrac takes AFCA determination to Federal Court
InterPrac Financial Planning is taking AFCA’s determination to the Federal Court, arguing the regulator did not adequately account for the conduct of other parties when allocating responsibility for losses arising from the Shield Master Fund’s collapse. The proceedings represent an active legal challenge to a binding regulatory decision, signalling Sequoia’s willingness to defend its subsidiary operations through formal judicial review.
The filing relates specifically to complaints in connection with advice provided by an InterPrac authorised representative. InterPrac contends that AFCA’s process failed to properly consider the role of other entities connected to the fund when determining liability under the AFCA Rules.
When big ASX news breaks, our subscribers know first
What is AFCA and why does this matter for investors?
AFCA is Australia’s external dispute resolution scheme for financial complaints. Its determinations are binding on financial firms unless challenged in court within strict timeframes. Challenging an AFCA determination through Federal Court proceedings is uncommon and typically signals a firm believes there are procedural or rule-based issues warranting judicial review.
For investors, understanding AFCA’s role is important. Determinations can carry financial liability implications for financial services firms. A successful court challenge could limit or remove such liability, while an unsuccessful challenge would likely uphold the original determination and any associated financial obligations.
InterPrac’s grounds for challenge
InterPrac’s position centres on two key arguments:
-
Inadequate allocation of responsibility: AFCA did not adequately account for the conduct of other parties connected to the Shield Master Fund when determining liability for investor losses
-
Limitations in AFCA’s framework: The determination highlights limitations in AFCA’s rules and processes when applied to matters involving multiple entities associated with fund collapses
The announcement references both the Shield Master Fund and the First Guardian Master Fund as relevant to the proceedings. InterPrac argues that AFCA’s approach to multi-entity matters resulted in an allocation of responsibility that does not reflect the full circumstances of the funds’ collapse.
The company has not disclosed the financial quantum at stake or provided commentary on the likelihood of success. Justin Harding, Director of InterPrac Financial Planning, is listed as the contact for further information regarding the proceedings.
The next major ASX story will hit our subscribers first
What this means for Sequoia shareholders
The Federal Court action represents Sequoia actively managing potential liabilities at the subsidiary level. Legal proceedings introduce uncertainty around timing and outcome, but also demonstrate management’s commitment to achieving what it considers a fair allocation of responsibility across all parties involved in the Shield Master Fund matter.
Shareholders should monitor this matter as court outcomes could influence any financial liability flowing from the original AFCA determination. The company has taken a proactive step by challenging the decision within the available legal framework, rather than accepting the determination without judicial scrutiny.
The proceedings are at an early stage, with no timeline provided for resolution. Federal Court matters involving regulatory bodies can take considerable time to work through the judicial process.
About Sequoia Financial Group
ASX-listed Sequoia Financial Group (ASX: SEQ) is a financial services group providing services to retail and wholesale clients of financial planners, brokers, accounting firms, and legal practitioners. The group operates businesses in financial services licensing, salaried advice, corporate advisory and capital markets expertise, establishment of legal structures and documents, media, and SMSF administration via three separate AFSLs.
Don’t Miss the Next Financial Services Development
Join 20,000+ investors getting FREE breaking ASX news delivered to your inbox within minutes, complete with in-depth analysis. Click the “Free Alerts” button at StockWire X to start receiving alerts the moment market-moving announcements hit the ASX.