Sequoia confirms ASIC Interprac Shield Funds scrutiny

Mike Taylor

Managing Editor and Publisher

9 April 2025

Publicly-listed financial services group, Sequoia Financial Group has gone public telling the Australian Securities Exchange (ASX) that its wholly-owned subsidiary, Interprac Financial Planning is the subject of an ASIC investigation related to the Shield Master Trust.

Sequoia notified the ASX late on Monday that a company already subject to ASIC action, Venture Egg and its principal, Ferras Merhi are authorised representatives of Interprac.

It noted that ASIC is investigating Merhi and various entities associated with him, in connection its investigations concerning the Shield Master Fund and the First Guardian Master Fund and had commenced proceedings in the Federal Court against Merhi and has obtained interim freezing orders.

The statement noted that ASIC has commenced an investigation into suspected contraventions of the Corporations Act and the ASIC by Interprac and/or its representatives.

The statement said Interprac is:

1. Assisting ASIC so that the interim freezing orders have not been, and are not, breached by Mr Merhi and/or other of his associated entities;
2. Reviewing:

• The obligations of the rating authorities with respect of the Funds
• Its obligations as to the advice provided compared to the performance of, and conduct engaged by, the funds;

1. Considering the obligations of trustees, auditors and custodians of the Funds
2. Considering the obligations of platform providers through which the investments into the Funds were made
3. Reviewing the operations and systems to ensure efficiency, compliance, and adaptability to changing environment; and
4. Cooperating fully with ASIC