Crole exits Sequoia effective immediately

Garry Crole is exiting Sequoia Financial Group as chief executive effective immediately as the fallout from the Shield and First Guardian master funds and legal action against subsidiary InterPrac Financial Planning rolls on.

Crole said his decision is "in the best interests of the company and its stakeholders." He remains a substantial shareholder in Sequoia. He also quit as a director of Sequoia and its subsidiaries.

Crole exits amidst corporate regulator ASIC's action against InterPrac, alleging its advisers failed to act in clients' best interests.

Together, InterPrac representatives Venture Egg and Rhys Reilly Pty Ltd advised about 6843 clients to invest some $677 million into the Shield Master Fund and First Guardian Master Fund.

On the offensive, InterPrac is suing the Australian Financial Complaints Authority (AFCA), believing it has not been treated fairly. It is also targeting a former client and victim of First Guardian based on an AFCA determination it contests.

Crole attempted to divest InterPrac for $50,000 to Conquest Investment Partners, but was eventually abandoned as ASIC raised questions over the sale.

Crole has been at the helm as group chief executive since 2019 following the resignation of Scott Beeton.

In 1988, he founded Deakin Financial Planning, which was later acquired by IOOF (now Insignia) in 2011. He then launched InterPrac in 2003, which was subsequently acquired by Sequoia.

Crole said: "It has been a privilege to lead Sequoia. I am proud of what the Group and its people have built, and I thank our advisers, clients and employees for their support over many years. I wish the board and the team every success."

Alex Fabbri is now the interim chief executive, having previously served as head of corporate finance. Sequoia has begun a search to find a permanent replacement for Crole.

Fabbri joined Sequoia in 2019.

The board said it "believes the depth of experience within the leadership team supports continuity for all stakeholders and positions the company for renewal in the next phase of its growth and development.

Michael Ryan has stepped down as chair of the embattled financial services firm on June 16.

As of today, non-executive director David Hentschke becomes the interim chair while Floriane Allard has been appointed as the new chief people officer.