Former CEO banned after financial collapses

A former executive at Sequoia Financial Group has been banned for 10 years from financial services roles after the collapse of two high-profile superannuation funds, Shield and First Guardian, left thousands of investors with losses. The Australian Securities and Investments Commission (ASIC) imposed the ban on Garry Crole, the former CEO of Sequoia and director of its subsidiary InterPrac Financial Planning, effective September 4. ASIC said the ban is the result of concerns related to Crole’s former roles as director and responsible manager of InterPrac Financial Planning, a wholly owned subsidiary of Sequoia Financial Group where Crole was chief executive.

The ban stems from ASIC’s findings that Crole failed to address serious concerns about the financial advice model used by InterPrac’s authorised representatives, Venture Egg and Rhys Reilly Pty Ltd. These entities were central to the promotions that led investors to switch their superannuation or set up self-managed super funds (SMSFs) in the now-defunct products. ASIC determined Crole lacked the required competence and oversight to manage the risks associated with these arrangements. The regulator emphasized that Crole was aware of the risks posed by the representatives’ reliance on lead generators—third-party entities that incentivized advisers to push specific products—but failed to implement corrective measures.

Crole served as a director of InterPrac from 20 August 2004 to 1 December 2025 and as a responsible manager from 1 February 2004 to 17 July 2026. He also served as a director of Sequoia from 18 November 2016 to 22 July 2026. Crole resigned from Sequoia in July but remains a substantial shareholder of the group. ASIC’s decision highlights his responsibility for InterPrac’s approved product list, which included both Shield and First Guardian.

ASIC’s broader crackdown on super fund failures

The regulator’s ruling follows a broader crackdown on the failures that led to the collapses. Around 11,600 investors lost money after being encouraged by lead generators to switch funds or invest in high-risk schemes tied to the two funds. Earlier this year, Macquarie Investment Management Limited (MIML) was found by the Federal Court to have breached the Corporations Act for failing to escalate the Shield Master Fund for closer scrutiny. Justice Wheelahan’s ruling emphasized trustees’ obligations to actively monitor investment options offered through super platforms, noting that Macquarie had failed to place the Shield investment options on a watch list that would have triggered enhanced oversight measures.

Two failures prove Crole unfit for financial roles

ASIC’s assessment of Crole’s fitness to hold financial services roles hinged on two key failures. First, he was aware of concerns about the use of lead generators, entities that incentivized advisers to push specific products, but did not act decisively. Second, he neglected to oversee InterPrac’s approved product list adequately, despite the risks posed by Shield and First Guardian. The regulator concluded that his lack of diligence and judgment made him unfit to perform such functions, stating that Crole was not a fit and proper person, was not competent, and lacked the diligence and judgement required to perform one or more functions as an officer of an entity carrying on a financial services business.

Crole can still challenge the ban by applying to the Administrative Review Tribunal for reconsideration. The decision adds to a series of regulatory actions targeting individuals and firms linked to the collapses. In April, former financial adviser Shane Monte Silva was banned for five years after ASIC found he failed to act in clients’ best interests when advising them to switch super funds into the high-risk schemes. Monte Silva, while an authorised representative of Financial Services Group Australia Pty Ltd (in liquidation), provided advice to five clients between July and August 2023 to invest in the Shield and First Guardian schemes, further illustrating the systemic issues at play.