Complaints mount for InterPrac amid Shield, First Guardian fallout

According to the latest Australian Financial Complaints Authority (AFCA) Datacube release, which has added complaints made during September, Sequoia subsidiary InterPrac Financial Planning has topped the list for investments and advice.

Last month, AFCA’s Datacube numbers showed that the licensee had received 125 complaints during the 2024-25 financial year, however, the two months that followed saw 297 complaints made against it, taking the total over 14 months to 422.

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The significant ramp-up in complaint volumes has continued, with InterPrac having significant exposure to the Shield and First Guardian collapses through its former authorised representatives Venture Egg, Reilly Financial, and Miller Wealth Group.

The latest monthly numbers have shown an even higher number of complaints, with InterPrac receiving 168 in September alone, up from 167 in August and 130 in July.

Last month, an InterPrac spokesperson confirmed to ifa that the licensee has been contacting clients that lodged AFCA complaints against the licensee in relation to its authorised representatives’ advice to invest in the First Guardian Master Fund.

The firm urged these clients to also make a complaint against their super trustee, which in the case of First Guardian claims is either Diversa, Equity Trustees or Netwealth.

It also provided clients with a pre-drafted complaint, according to the report, that did not take into account any personal circumstances or the specifics of their experience, however it does not attempt to have the complaint against InterPrac withdrawn.

In a statement, an InterPrac spokesperson said that it has “assisted only a very small number of members to navigate the AFCA path toward compensation”.

“No program of standard letters exists. There are considerable technical issues around lodging such a complaint,” they said.

The spokesperson also argued that the licensee’s position has been “consistent throughout this period”.

“Many members have found it difficult to know how to lodge a complaint to AFCA against the many parties involved in the advice chain,” the spokesperson said.

“InterPrac notes that AFCA have themselves deemed any complaint regarding superannuation trustees to be a ‘Superannuation Complaint’ under the Corporations Act, meaning the trustees cannot be joined to the current complaints against InterPrac according to the AFCA rules.

“This technicality in the AFCA rules makes complaints for failed funds within superannuation extremely difficult to navigate.”

While there is no data on what the complaints relate to specifically, Netwealth Superannuation Services received 56 complaints over the first quarter of FY26, Diversa received 127, while Equity Trustees did not have numbers available on the Datacube. It did, however, have 67 complaints progressed during the period.

The data for complaints made against other licensees caught up in the Shield and First Guardian scandal showed that both Financial Services Group Australia and MWL Financial Services had received 110 complaints over the September quarter.

Prior to October, the AFCA Datacube normally only updated every six months, however the complaints authority has moved to monthly releases.

“The change will provide more timely insights for consumers, small businesses, and financial firms,” AFCA said.

“AFCA’s Datacube is an interactive public database of complaints about financial firms and includes all firms that received four or more complaints in the past 12 months. The information supports AFCA’s vision of an Australia free from financial disputes by sharing transparent and accessible data.

“It helps member firms benchmark their performance and enables consumers and small businesses to make informed choices about financial products and services.”