Sequoia profits tank as advisers flee

Sequoia Financial has reported a poor performance for the first quarter with revenue down 58.3% to $12.9 million and a net profit loss of $500,000.

"The fall in net profit mainly reflected fewer authorised representatives operating under InterPrac's Australian financial services licence (AFSL)," Sequoia said.

"The Shield and First Guardian matters continued to affect InterPrac's licensee business, including through the continuing move of authorised representatives to other licensees."

Sequoia said as at September 30, InterPrac had 66 advisers under the AFSL, about 20 of which have said they intend to move elsewhere.

"The compliance team helped InterPrac advisers move to other licensing arrangements and supported licensees that wanted more capacity," it said.

Despite the poor performance, former chief executive Garry Crole walked away with $402,000 including superannuation, after resigning on July 22 in the wake of the Shield and First Guardian collapses.

Sequoia announced the sale of InterPrac on October 13 and said it is working with the Australian Securities and Investments Commission (ASIC) to resolve its questions about the deed of cross guarantee.

Looking ahead, Sequoia said it is prioritising completing the remaining matters associated with the sale of InterPrac, finalising its review of all operating subsidiaries and maintaining well-capitalised balance sheet to support selective growth in the continuing businesses.

Additionally, it is aiming to continue developing the documents business's technology platforms, build Sequoia Wealth Management's participation in new capital raisings, and expand the equities business by increasing adviser numbers.

It also intends to progress the APAC business's applications for Hong Kong operating licences.