ASIC initiates action against Interprac and SQM Research
The Australian Securities and Investments Commission (ASIC) has announced it is suing financial planning group Interprac and research and ratings house SQM Research over issues relating to the collapse of Shield and First Guardian.
The regulator said it has commenced civil penalty proceedings in the Federal Court against Interprac for allegedly failing to ensure its former authorised representatives Venture Egg (a corporate partnership), and Rhys Reilly Pty Ltd (together, Representatives), complied with the best interests obligations and for failing to have adequate risk management systems.
With respect to SQM Research it said it is alleging that published reports in October 2021 and March 2022 that rated different class of Shield as three and three quarter stars favourable.
ASIC alleges that SQM Research:
- failed to obtain the information it needed to properly assess Shield;
- failed to properly consider inconsistencies in information it received when preparing its reports about Shield;
- misrepresented that it had a reasonable basis for giving Shield a “Favourable” rating and had exercised reasonable care and skill in doing so; and
- made misrepresentations that understated the percentage of funds managed by parties related to Shield and the asset allocation of Shield.
ASIC alleges that the SQM Research reports did not accurately depict the standard, quality, value or grade of Shield, and that reflected deficiencies in the processes SQM followed.
Erm, is the actual audit company who signs off on the Shield accounts, going to get in trouble?
Interprac / Sequoia about to finalise the ‘“Dixon’s” Illegal Phoenix strategy.
Such a strategy is ASIC approved as they did NOTHING to recover the $$$ Tens of Millions $$$ that E&P dragged out of Dixon’s for ZERO CONSIDERATION.
Interesting ASIC takes this action but doesn’t cancel the AFSL?
Nothing to see here 🤣
Based on ASIC’s recent court appearances, this will get thrown out by the judge before it even begins.
On another note, how is Rhys Reilly still a current authorised rep yet others have been banned for the same thing!