The Australian Securities and Investments Commission (ASIC) has launched civil penalty proceedings against Interprac Financial Planning, alleging critical oversight and compliance failures that exposed thousands of Australians to high-risk investments and poor financial advice.
The case, filed in the Federal Court, centres on alleged breaches of Interprac’s licensee obligations and failures to ensure its authorised representatives complied with best-interest duties.
ASIC claims Interprac’s inadequate governance allowed more than 6,800 clients to invest around $677 million of their superannuation into the Shield Master Fund (Shield) and First Guardian Master Fund (First Guardian) — both of which have since collapsed.
ASIC alleges Interprac failed to implement and enforce robust risk-management systems and product-approval processes. According to the regulator, the company relied solely on external research when adding Shield and First Guardian to its approved investment list for advisers.
The proceedings also accuse Interprac of failing to:
ASIC Deputy Chair Sarah Court said the alleged failures represented serious breaches of duty to clients.
“Interprac’s alleged oversight and compliance failures exposed thousands of Australians to poor advice and significant financial risk,” Court said in a media release.
“We allege Interprac failed to ensure certain authorised representatives acted in their clients’ best interests, contributing to hundreds of millions of dollars of superannuation being invested in products that were unsuitable, high risk and costly.”
She said ASIC’s investigation found that Interprac’s systems were so deficient that red flags went unchecked.
“We allege that no competent financial adviser could have recommended Australians invest large amounts of their superannuation in these funds, and that Interprac – as licensee – should have been alert and responsive to the significant risk this conduct posed to clients, but it failed on many levels,” Court said.
On the same day, ASIC also announced new civil penalty proceedings against SQM Research, alleging it published “Favourable” ratings for the Shield Master Fund despite misleading representations and inadequate due diligence.
In a media release, the regulator said the SQM Research case marks the first time ASIC has taken action against a research house, describing such firms as “important gatekeepers” that must exercise care, skill, and accuracy when rating investment products.
ASIC has also sought the court’s leave to proceed against MWL Financial Services (administrators appointed), alleging that nine advisers directed 556 clients to put about $114 million of their super into Shield between May 2022 and February 2024.
ASIC says MWL failed to meet best-interests and appropriate-advice duties, and that lead generator Imperial Capital misled prospective clients. MWL allegedly received advice fees for SOAs recommending Shield, while Imperial (via a related entity) collected about $12.8 million from Shield-linked entities for referrals. ASIC is seeking civil penalties, declarations, and orders restraining Interprac from providing financial services.
The case against Interprac is the latest in a series of major enforcement actions following the collapse of the Shield and First Guardian Master Funds — described by ASIC as one of its largest and most complex investigations to date.
Court recently reaffirmed ASIC’s focus on private credit practices and licensee accountability as part of its 2026 enforcement priorities, saying the regulator will “zero in on misconduct that exposes consumers to financial harm.”
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