ASIC 'scrutinising' Sequoia's second InterPrac fire sale

The corporate regulator says it is "closely scrutinising" Sequoia Financial Group's second attempt at a fire sale of InterPrac Financial Planning to a little-known private investor.

Sequoia yesterday announced it had "successfully concluded" the sale of InterPrac to Bellbird Australia for $200,000 but is subject to customary adjustments.

"As the sale of InterPrac has completed, Sequoia has revoked the deed of cross guarantee dated 2 June 2022 insofar as it relates to InterPrac," Sequoia said.

An ASIC spokesperson confirmed to Financial Standard it is aware of Sequoia's ASX announcement regarding the sale of InterPrac but did not comment any further, other than saying it is looking into the transaction.

ASIC intervened in Sequoia's first attempt to divest InterPrac for $50,000 in March to Conquest Investment Partners.

ASIC swiftly sought the Federal Court to appoint a receiver to investigate the sale of InterPrac to Conquest, saying it had concerns over what it may mean for the advice group's creditors.

In May, that deal fell through amid ASIC raising red flags. In July, the Federal Court granted ASIC leave to discontinue the proceedings it commenced in April, when it sought the appointment of receivers to investigate the validity of the sale of InterPrac to Conquest. Central to this was the Cross Deed of Guarantee, to which Sequoia, InterPrac and other related entities are party.

The following month, ASIC withdrew legal proceedings against Sequoia after it entered an undertaking not to put the Cross Deed of Guarantee at risk in connection with the sale of InterPrac.

Sequoia has now rescinded the Cross Deed of Guarantee in InterPrac's divestment to Bellbird.

The lead advocate of SOS Save Our Super Melinda Kee said the sale of InterPrac for just $200,000 is of "the greatest concern" as is the revocation of the Deed of Cross Guarantee.

"This could potentially remove an important layer of financial protection for investors, leaving them reliant on InterPrac's ability to meet its liabilities," she said in a statement to Financial Standard.

"ASIC previously intervened over these very concerns. So, what has changed? Has ASIC approved the implications of this transaction, and who will ultimately be responsible for meeting the outstanding AFCA determinations?

"Investors deserve reassurance that this sale has not further reduced their chances of recovering their retirement savings. We cannot allow corporate restructuring to come at the expense of victims who have already lost so much."

It is understood that Scott Beeton, the founder and former chief executive and managing director of Sequoia until 4 February 2019, is behind Bellbird. Financial Standard reached out to Sequoia to confirm this but did not receive a response.

Beeton is currently the managing director of ASX-listed diversified financial services and investment company ARC Funds, a role he has held since 1 July 2024.

Prior to joining ARC, Beeton was an executive at ASX-listed Finexia Financial Group and a non-executive director of Registry Direct, which was acquired by Complii Fintech Solutions.