ASIC Launches Court Action Against Interprac for Compliance Failures Tied to Collapsed Super Funds Investment Advice

The Australian Securities and Investments Commission (ASIC) has commenced civil penalty proceedings in the Federal Court against Interprac Financial Planning Pty Ltd, alleging serious oversight and compliance failures that exposed thousands of Australians to poor financial advice and significant risks.

ASIC claims Interprac failed to ensure its former authorised representatives — Venture Egg and Rhys Reilly Pty Ltd — met their best interests obligations and operated under adequate risk management systems. Together, the representatives advised around 6,843 clients to invest approximately $677 million of their superannuation into the Shield Master Fund and First Guardian Master Fund, both of which have since collapsed, leaving retirement savings at risk.

ASIC Deputy Chair Sarah Court stated that no competent adviser could have recommended such large superannuation investments in these funds, and that Interprac, as licensee, should have recognised and acted on the risks but failed on multiple levels.

ASIC is seeking declarations, civil penalties, and orders restraining Interprac from carrying on a financial services business.

The case follows other enforcement actions linked to Shield. In October, ASIC banned Melbourne adviser Wade Lance Spooner for eight years over misconduct involving high‑risk superannuation advice tied to the fund.

ASIC has previously issued a consumer alert warning Australians to be cautious of complex and risky investment schemes that target retirement savings.