History’s grim lessons for InterPrac

Mike Taylor

Managing Editor and Publisher

20 March 2026

ANALYSIS

The news that Sequoia Financial has been engaged in advanced discussions with a third party regarding a possible transaction involving its troubled advice licensee, InterPrac, has raised eyebrows because of recent history.

Those who witnessed the fall-out from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services industry will remember the scale of the indemnities provided by the major banks to the buyers of their financial advice assets.

For instance, in the case of the Commonwealth Bank’s sale of Count Financial (now Count Limited) to CountPlus, the bank provided an initial indemnity of $200 million in a transaction which valued the asset at just $2.5 million.

Given the regulatory focus currently directed towards InterPrac there has been no discussion of indemnities but there has been speculation around the transition of InterPrac financial advisers to another licensee.

Either way, whatever course is eventually followed by Sequoia with regard to InterPrac it will be the subject of close scrutiny by the Australian Securities and Investments Commission (ASIC) including the regulator directing attention towards licensees who move to re-home a significant number of InterPrac advisers.

There have been few instances of significant licensees peremptorily ceasing business, but in 2018 ASIC forced the closure of Dover Financial Advisers with its sole director, Terry McMaster accepting a court enforceable undertaking to effectively apply for the cancellation of its AFSL. The move left around 400 advisers without a home.

Licensees who rehomed the orphaned Dover advisers did so being aware of regulatory scrutiny.

Those who have been monitoring Sequoia’s handling of InterPrac’s troubles will have noted that the company’s announcement this week regarding its range of “strategic options” for the licensee follow on from its 2 March announcement to the Australian Securities Exchange (ASX) that it intended withdrawing a Revocation Deed entered into on 12 September, last year.

That revocation deed sought to release three of its subsidiaries from a deed of cross-guarantee – InterPrac, Sequoia Asset Management and Sequoia Wealth Management and ASIC moved to have Sequoia revoke that arrangement. The regulator clearly wanted key chess pieces left in place.

For now, attention will remain on the Sequoia board and chief executive, Garry Crole and whether InterPrac can be sold or, more likely, the company will support advisers to transition to another licensee.

Most observers are expecting the latter option.