Sequoia can’t explain share price drop

Mike Taylor

Managing Editor and Publisher

31 July 2025

Sequoia Financial Group has reiterated that it is cooperating with the Australian Securities and Investments Commission (ASIC) with respect to the regulator’s investigation into the Shield Master Fund and First Guardian Master fund and their responsible entities.

However, Sequoia has told the Australian Securities Exchange (ASX) that it is not aware of any information that could explain recent trading in securities.

That trading has seen the company’s share price plummet by more than 10 cents in less than a week to be trading at 23 cents yesterday after Sequoia came out of a trading halt. It later mounted a modest rebound.

Sequoia’s response to the ASX query said that the company had no material undisclosed information but noted that “the Company is aware of an article in The Australian dated July 25, 2025, headlined ‘Shield investor money got Sequoia’s Morrison Securities deal over the line’”.

“The company notes that The Australian’s story says it is not suggesting InterPrac or Sequoia knew the source of New Quantum’s funds at the time,” it said.

“The company is cooperating with ASIC which is investigating the failure of the Shield Master Fund and First Guardian Master Fund and their responsible entities,” it said noting that details of the investigations were provided in an announcement to the market in April.

“The directors of SEQ confirm there is nothing further to announce at this time,” the company’s response said.

Sequoia entered a trading halt just hours after it announced the resignation of the former chair of the board Risk and Compliance Committee, Charles Sweeney, effective 29 July.

Sequoia sold 80% of its stake in equities clearing business Morrison Securities to New Quantum in March, 2023, for a reported $40.5 million with later reporting noting that money from the Shield Master Fund had helped get the deal over the line.