Thousands of Australians caught in the collapse of First Guardian and Shield fear their savings may never be recovered after their financial planning firm was sold for $200,000.
Around 12,000 investors placed a combined $1 billion from their superannuation into Shield and First Guardian before both funds failed amid allegations that investors’ money had been misused.
More than half of those investors were clients of InterPrac Financial Planning, which has now been sold to a newly established company.
The buyer, Bellbird Australia, was registered this week and is controlled by Scott Beeton, the founder and former chief executive of InterPrac’s ASX-listed parent, Sequoia Financial.
The transaction could limit some potential recovery options for affected investors by cutting an important financial connection between InterPrac and the wider Sequoia group.
After the sale was completed, Sequoia confirmed it had withdrawn a deed of cross guarantee that had covered InterPrac.
“As the sale of Interprac has completed, Sequoia has revoked the deed of cross guarantee dated June 2, 2022 insofar as it relates to Interprac,” Sequoia told the market on Tuesday.
As a result, Sequoia and its other subsidiaries will no longer be responsible for InterPrac’s obligations under the guarantee, a move that could affect the recovery pathways available to claimants.
Thousands of investors caught up in the First Guardian and Shield collapse fear they may never recover their money after a financial planning company was sold for $200,000 (stock)
The Albanese government announced reforms to strengthen consumer protections in August
Investor advocate Melinda Kee said the sale had stripped victims of what she regarded as a vital financial safeguard.
“It’s an absolute disgrace,” she told the Daily Mail.
“Thousands of Australians have lost their retirement savings and, while they are fighting to get their money back, InterPrac has been sold to a company established just days earlier for $200,000.”
Ms Kee said the development was especially concerning for investors who had lodged complaints with the Australian Financial Complaints Authority (AFCA), alleging they were advised to place their retirement savings in Shield and First Guardian.
“Sequoia’s shares go up 30 per cent while investors are left wondering who is going to pay their Australian Financial Complaints Authority claims,” she said.
She said the sale could also raise questions about other unresolved matters, including an ongoing legal dispute between InterPrac and AFCA.
InterPrac is taking the complaints authority to court over its handling of complaints linked to Shield and First Guardian.
“What happens to the court case against AFCA now?” Ms Kee asked.
Bellbird Australia, controlled by Scott Beeton (pictured), has bought InterPrac Financial Planning. More than 6,000 InterPrac clients were caught up in the collapse of Shield and First Guardian
Ms Kee also questioned whether investors had lost their strongest opportunity to recover any amount above the $150,000 limit available under the Compensation Scheme of Last Resort.
The scheme can compensate eligible consumers when certain unpaid AFCA decisions meet the scheme’s requirements, but compensation is capped at $150,000 per eligible claim.
Ms Kee said the scheme was already at breaking point and currently had no money available to pay claims for the remainder of the financial year.
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That leaves investors who lost more questioning whether the removal of Sequoia’s guarantee has cost them their best chance of recovering amounts above the cap.
‘ASIC stepped in to stop this happening earlier in the year. So how has it been allowed to happen now?’ Ms Kee added.
‘Investors have been let down enough. We need answers, not another corporate deal that leaves victims paying the price.’
ASIC intervened over an earlier attempt to sell InterPrac when, earlier this year, Sequoia proposed selling the licensee to Conquest Investment Partners for just $50,000.
ASIC commenced Federal Court proceedings in April amid concerns about InterPrac’s creditors and sought the appointment of a receiver to investigate the proposed sale.
Investor advocate Melinda Kee (pictured) said the sale had removed a crucial financial backstop for victims and was an ‘absolute disgrace’
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The regulator said it feared ‘the intended sale of InterPrac may adversely affect the interests of its creditors, including InterPrac’s liabilities arising from AFCA complaints in relation to the Shield Master Fund and First Guardian Master Fund, given that Sequoia may cease to guarantee InterPrac’s debts upon completion of the sale to Conquest’.
Now InterPrac has been sold for four times that amount to Bellbird.
An ASIC spokesperson confirmed to the Daily Mail that the regulator was aware of Sequoia’s announcement and was ‘closely scrutinising’ the transaction.
The Daily Mail has contacted InterPrac and Mr Beeton for comment. Sequoia declined to provide a statement beyond what is in the ASX market announcement.
Meanwhile, ASIC is already suing InterPrac over its role in the First Guardian and Shield collapse.
ASIC’s civil penalty case, filed on November 13, 2025, alleges InterPrac failed to ensure former authorised representatives Venture Egg and Rhys Reilly Pty Ltd complied with their best interests obligations.
ASIC says the two advised more than 6800 clients to invest about $677million of their super in Shield and First Guardian.
The regulator is seeking declarations, civil penalties and orders restraining InterPrac from carrying on a financial services business.
The matter is listed for case management on April 9, 2027.
In August, the Albanese government announced reforms to strengthen consumer protections.
‘The collapses of the Shield and First Guardian Master Funds exposed profound risks and vulnerabilities in parts of the financial system,’ the government said.
‘Broader losses within the Self‑Managed Superannuation System, which have placed significant strain on the CSLR, have also highlighted the poor member outcomes which arise from insufficient consumer protection.
‘These losses reveal how consumer harm can emerge across the system, where poor conduct at one point in the chain can be amplified as consumers move between lead generators, advisers, trustees, investment products and compensation arrangements.’