The Australian Securities and Investments Commission (ASIC) barred former Sequoia Financial Group CEO Garry Crole from financial services management roles for 10 years today (Tuesday). The order applies to director and responsible manager functions.

Interprac Financial Planning representatives advised 6,843 clients to invest about A$677 million (about $488 million) of retirement savings into the First Guardian Master Fund and Shield Master Fund between 2021 and 2024, according to ASIC’s court filing. Both funds later collapsed.

The decision puts senior licensee oversight at the center of an enforcement campaign that had already reached advisers, fund operators, platform trustees and auditors. ASIC said Crole can ask the Administrative Review Tribunal to review the ban.

ASIC Cites Lead Generators and Product Oversight

ASIC found that Crole was not fit and proper, was not competent and lacked the diligence and judgment needed to serve as an officer of a financial services business.

The regulator said Crole knew of serious concerns about the advice model used by former Interprac representatives Venture Egg and Rhys Reilly Pty Ltd. That model included lead generators, but ASIC said he did not respond adequately.

ASIC also found that Crole did not take adequate care in managing and overseeing Interprac’s approved product list. First Guardian and Shield were both on it.

The order took effect on September 4.

Crole held several of the roles for years. ASIC dates his Interprac directorship from August 2004 to December 2025 and his responsible manager tenure from February 2004 to July 2026.

He also served as a Sequoia director from November 2016 until July 2026. Sequoia’s latest annual report says he resigned as managing director and CEO on July 21, with Alex Fabbri appointed interim CEO the following day.

Interprac Is Fighting a Separate Civil Case

The banning decision is separate from ASIC’s civil penalty case against Interprac. In that proceeding, the regulator alleges the licensee failed to ensure its representatives acted in clients’ best interests and did not manage conflicts or the risks created by the advice model.

Interprac said in a November 2025 ASX announcement that it would defend those allegations. Crole said at the time that its board and staff “take our compliance and governance obligations seriously.” That statement predated the personal banning order and did not address it.

ASIC’s civil claim says Venture Egg and Rhys Reilly Pty Ltd advised clients to direct about A$677 million into the two funds. The regulator has not alleged that all of that amount was lost.

The advice chain forms one part of a wider case. FinanceMagnates.com reported in August that First Guardian and Shield involved about 11,000 investors and roughly A$1.1 billion across the two funds.

Enforcement Has Reached Advisers and Trustees

ASIC has taken separate action against Venture Egg director Ferras Merhi and Rhys Reilly. A court imposed interim restrictions on Merhi in October 2025, while ASIC banned Reilly for 10 years in April.

Other cases have focused on the platforms that offered the funds. Macquarie paid about A$321 million to affected Shield members, while Netwealth agreed to compensate more than 1,000 First Guardian investors by over A$100 million.

Those payments contributed to more than A$583 million returned to consumers and investors during ASIC’s July to December 2025 enforcement period. Proceedings against other trustees remain open.

ASIC has used fixed-term bans in other oversight cases. In 2024, it barred two former XTrade Australia directors from director and responsible manager functions for three and five years.

Crole’s order runs for twice the longer of those two periods. The next listed step in a related First Guardian trustee case is an Equity Trustees case-management hearing scheduled for September 11.

The underlying civil proceedings against Interprac and other parties remain before the Federal Court.

This article was written by Damian Chmiel at www.financemagnates.com.RegulationRead More

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