Australian Investors Face Further Blow as Financial Firm Linked to Fund Collapse Sold

Thousands of Australians who invested approximately $1 billion from their superannuation into the collapsed Shield and First Guardian funds are facing renewed concerns about recovering their money. This comes after InterPrac Financial Planning, a firm whose clients were heavily impacted, was sold to a newly registered company for $200,000.

About 12,000 individuals had invested in the funds before they collapsed amid allegations of misused investor money. More than half of these investors were clients of InterPrac.

The purchasing company, Bellbird Australia, is controlled by Scott Beeton, the founder and former chief executive of InterPrac's parent company, Sequoia Financial. The sale's completion has led Sequoia to revoke a deed of cross guarantee that previously covered InterPrac.

This revocation means Sequoia and its subsidiaries are no longer liable for InterPrac's obligations under the deed, potentially diminishing avenues for claimants to recover their losses. Investor advocate Melinda Kee described the sale as an "absolute disgrace," expressing concern that it has removed a critical financial backstop for victims.

"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," Kee told the Daily Mail.

Kee also raised concerns about the impact on claims being handled by the Australian Financial Complaints Authority (AFCA), particularly for investors who lost amounts exceeding the Compensation Scheme of Last Resort's (CSLR) $150,000 cap. The CSLR is currently facing financial strain and has no funds available to pay claims for the remainder of the financial year.

The sale also raises questions about an ongoing legal battle between InterPrac and AFCA concerning the handling of complaints related to the Shield and First Guardian funds.

This transaction follows an earlier attempt to sell InterPrac to Conquest Investment Partners for $50,000, which prompted intervention from the Australian Securities and Investments Commission (ASIC). In April, ASIC initiated Federal Court proceedings, citing concerns about InterPrac's creditors and the potential impact of the sale on liabilities arising from AFCA complaints. ASIC sought the appointment of a receiver to investigate that proposed sale.

ASIC is independently pursuing a civil penalty case against InterPrac, filed on November 13, 2025. The regulator alleges InterPrac failed to ensure its former authorized representatives, Venture Egg and Rhys Reilly Pty Ltd, complied with their best interests obligations. ASIC claims these representatives advised over 6,800 clients to invest approximately $677 million of their superannuation into Shield and First Guardian. The regulator is seeking declarations, civil penalties, and orders to restrain InterPrac from operating as a financial services business. The case is scheduled for case management on April 9, 2027.

In response to the collapses of funds like Shield and First Guardian, which exposed significant risks and vulnerabilities in parts of the financial system, the Albanese government announced reforms in August aimed at strengthening consumer protections. The government noted that broader losses within the Self-Managed Superannuation System had placed strain on the CSLR and highlighted poor member outcomes resulting from insufficient consumer protection.

An ASIC spokesperson confirmed the regulator is aware of the sale of InterPrac and is "closely scrutinising" the transaction. The Daily Mail has sought comment from InterPrac and Beeton, while Sequoia Financial provided no further statement beyond its market announcement.