InterPrac continues First Guardian advice firm termination spree

Sequoia subsidiary InterPrac has continued in its efforts to distance itself from the advice firms caught up in the Shield Master Fund and First Guardian Master Fund collapses.

The latest target is Miller Wealth Group, which is the final advice firm under InterPrac’s AFSL that the Australian Securities and Investments Commission (ASIC) has named in relation to the failed funds – though it is only connected to First Guardian.

Ferras Merhi and his advice firm Venture Egg Financial Services were both authorised representatives of InterPrac until the end of May this year, when the licensee cut ties.

Venture Egg has been the main advice firm under the regulator’s spotlight, with somewhere in the range of $440 million in client funds invested across Shield and First Guardian.

However, both Reilly Financial and Miller Wealth Group also advised clients to invest in one or both of the funds.

Last week, Sequoia confirmed that “InterPrac is in the process of terminating its relationship with Reilly Financial”, and has since confirmed that this would extend to Rhys Reilly’s other firm – The Life Insurance Company.

Reilly is already showing as having dual authorisation on the Financial Advisers Register (FAR), joining Conexus Group as of 5 August, despite the licensee not authorising a financial adviser since January 2024.

Two other employees of Reilly Financial are also showing as authorised representatives of Conexus Group, however neither are on the FAR.

A spokesperson for InterPrac has since told ifa that “the termination of the Miller Wealth Group relationship is also taking place”.

Miller Wealth Group had already shut down its website and is listed as permanently closed, however, both the firm and its advisers are current on the FAR and still authorised under InterPrac.

“All advisers are responsible for their own product selection and portfolio construction recommendations. InterPrac does not influence their choice of investments but provides an approved product list for them to select from after undertaking their own due diligences,” the spokesperson added.

Reilly Financial and Miller Wealth Group were among the handful of firms connected to Shield and First Guardian.

Outside of the InterPrac-licensed practices, Merhi’s own licensee, Financial Services Group Australia (FSGA), authorised four firms that ASIC highlighted: Rebellis Financial Services, 5 Point Australia, AS Financial Planning, and STC Financial.

All four firms entered into liquidation on 3 December 2024.

ASIC has also identified United Global Capital (UGC) in connection with First Guardian, while Next Generation Advice and MWL Financial Services put clients into Shield.

While MWL appears as though it could be the last advice firm standing, it has some close ties with Shield responsible entity Keystone Asset Management.

MWL director and manager of its accounting business, Louie Kortesis, also served as a director of Keystone from 29 December 2023 to 14 November 2024.

According to The Australian, around $4.9 million found its way from Shield through the Chiodo Corporation to 24Calibre, an entity controlled by Kortesis, “apparently for celebrity appearance fees, agent fees, travel costs and operating costs”.

The regulator has banned four MWL-authorised financial advisers over the last month.