Sequoia Financial (ASX:SEQ) announced that its subsidiary, InterPrac Financial Planning, has commenced legal proceedings against the Australian Financial Complaints Authority.
The lawsuit, filed in the Federal Court of Australia, serves as a direct challenge to a final determination issued by the industry ombudsman on Christmas Eve 2025.
The dispute centres on complaints regarding advice provided by an InterPrac authorised representative concerning the Shield Master Fund.
Following the collapse of the fund—and the associated First Guardian Master Fund—AFCA's ruling sought to allocate responsibility for investor losses.
However, InterPrac contends that the authority’s findings are fundamentally flawed.
The firm argues that AFCA failed to adequately account for the conduct of other parties connected to the fund's management, suggesting that InterPrac has been unfairly singled out for systemic failures involving multiple entities.
Beyond the immediate financial implications, the proceedings aim to expose what InterPrac describes as critical "limitations" in AFCA's internal rules and processes.
InterPrac asserts that the current framework is ill-equipped to handle complex cases involving multiple responsible parties, leading to inequitable outcomes.
At the time of reporting, Sequoia Financial's share price was $0.25.