Sequoia Financial Group (ASX:SEQ) has intensified the strategic review of its retail licensee operations, specifically targeting its long-standing subsidiary, InterPrac Financial Planning.
The company confirmed it is exploring a total divestment of the business unit following shifts in the Australian financial services landscape.
The development comes as major investment platform providers, including industry heavyweights Macquarie Group and Netwealth, reconsider their commercial ties with Sequoia-controlled Australian Financial Services Licences.
The board and senior management are currently weighing several structural paths for InterPrac, which has provided AFSL services to retail advisers for two decades.
While options include continuing under revised operational arrangements or transitioning authorised representatives to alternative structures, the company revealed it is in "advanced discussions" with an undisclosed third party regarding a potential sale.
Sequoia cautioned that these negotiations remain incomplete and there is no guarantee a deal will be finalised.
Should a sale proceed, it will be subject to stringent ASX Listing Rules requiring formal shareholder approval.
At the time of reporting, Sequoia Financial’s share price was $0.24.