US EditionASIC Ups the Ante with Avalanche of Lawsuits for Shield, First Guardian
ASIC alleges Interprac allowed poor advice and compliance failures that exposed nearly 7,000 clients to $677 million in risky superannuation investments, leading to scheme collapses.
- On Thursday, the Australian Securities and Investments Commission filed civil penalty proceedings in the Federal Court against Interprac over alleged failures tied to the Shield Master Fund and the First Guardian Master Fund, saying the collapses cost people over $1 billion.
- ASIC alleges Interprac failed to ensure authorised representatives complied with best‑interests obligations, relied entirely on external research to approve Shield and First Guardian, and ignored payments linked to Ferras Merhi's companies.
- ASIC says Interprac representatives advised about 6,843 clients to invest about $677 million into Shield and First Guardian, while Ferras Merhi, authorised representative , advised 2,930 clients to invest $243m into First Guardian and 2,664 clients to invest $173m into Shield.
- ASIC is seeking declarations, civil penalties and orders to restrain Interprac from carrying on a financial services business, and recently secured Federal Court interim orders restraining Ferras Merhi while pursuing separate proceedings.
- ASIC also sued SQM Research, the research house, alleging it gave a 'favourable' rating for Shield without necessary information and alleges lead generator Imperial Capital Group received nearly $13 million in commissions while MWL Financial Services remains in administration.
12 Articles
12 Articles
Sydney Morning Herald
ASIC ups the ante with avalanche of lawsuits for Shield, First Guardian
The corporate watchdog has stung a range of groups which received big fees for driving 12,000 ordinary Australians into a $1 billion super disaster.
Herald Sun
ASIC hits Interprac, SQM, MWL Financial after First Guardian collapse
Australia’s corporate watchdog has launched a fresh legal blitz against three companies it claims misled Australians before the collapse of investment funds First Guardian and Shield.
ASIC blitz targets Shield, First Guardian advisers, research firm
Save (0) Please login to bookmarkClose Username or Email Address Password Remember Me The corporate cop has launched two new cases and sought approval to bring a third action over financial advice that led customers to sink hundreds of millions of dollars in retirement savings into the failed Shield and First Guardian investment funds. Subscribe to Lawyerly to access this article.Already a subscriber? Username or Emai…
ASIC Sues Interprac Over Alleged Shield and First Guardian Licensee Failures
ASIC claims Interprac’s oversight failures exposed more than 6,800 clients to poor advice, resulting in around A$677 million of superannuation being invested in the Shield Master Fund and First Guardian Master Fund, both of which have since collapsed. The regulator alleges that Interprac relied entirely on external research when approving investment products, failed to act on red flags related to fund payments, and allowed advisers to use ‘negat…
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