ASIC mulls more action against InterPrac

Mike Taylor

Managing Editor and Publisher

1 June 2026

The Australian Securities and Investments Commission (ASIC) says it is examining its options with respect to taking measures against financial advice licensee, InterPrac, over its failure to pay an Australian Financial Complaints Authority (AFCA) Shield determination.

ASIC deputy chair, Sarah Court told the Parliamentary Joint Committee on Corporations and Financial Services that ASIC was considering its options in circumstances where the investor affected by non-payment of the AFCA determination, Melinda Kee, had actually been enjoined in legal action initiated by InterPrac against AFCA.

InterPrac is alleging via Federal Court proceedings initiated in early March that AFCA did not adequately take account of the conduct of other parties connected to the Shield Master Fund when allocating responsibility for losses arising from the fund’s collapse in accordance with AFCA rules.

Court said ASIC was concerned to ensure that the enjoining of the investor in legal did not act as a disincentive to other affected investors to pursue their rights by lodging claims with AFCA.

“We’ve been recently advised by AFCA that InterPrac has failed to give effect to the AFCA determination that concerned Ms Kee and that does now put the matter within our ball park to take some action in relation to that failure to give effect to the determination,” she said.

“We are giving that some thought and we also understand that as a result of these actions AFCA have announced that it is proposing not to make further determinations in relation to Shield and First Guardian complaints lodged against InterPrac but they will, however, continue to receive and accept those complaints,” Court said.

“I think that it is important that they [AFCA] are still doing that work.”

“I won’t speak for AFCA but I believe they are doing that to avoid unnecessary complexity and the stress on other impacted consumers,” Court said.

Queensland Liberal Senator, Paul Scarr said he was deeply concerned about the position in which Ms Kee had found herself as a result of InterPrac’s actions.

“I think it is absolutely outrageous and I think the directors and shareholders of InterPrac need to carefully consider their position with respect to this,” he said.