Australia's corporate regulator has dramatically escalated its legal campaign targeting companies involved in the catastrophic failures of the Shield and First Guardian investment funds.
New Lawsuits Target Advice and Research Firms
The Australian Securities and Investments Commission (ASIC) revealed on Thursday, 13 November 2025, that it is taking legal action against advice licensee InterPrac Financial Planning and research house SQM Research. The regulator is also seeking court permission to commence proceedings against another advice firm, MWL Financial Services.
ASIC alleges all three companies breached their duties to investors by recommending they pour hundreds of millions of dollars, primarily from superannuation savings, into Shield and First Guardian. These funds collapsed last year, resulting in massive financial losses for thousands of Australians.
Allegations of Systemic Failures
In its lawsuit against InterPrac, ASIC claims the firm failed to ensure its former authorised representatives, Venture Egg and Rhys Reilly, complied with their 'best interests' obligations. The representatives allegedly advised approximately 6843 clients to invest a staggering $677 million of their super into the high-risk funds.
ASIC deputy chair Sarah Court stated that InterPrac's alleged oversight and compliance failures exposed thousands of Australians to poor advice and significant financial risk. "We allege InterPrac failed to ensure certain authorised representatives acted in their clients’ best interests, contributing to hundreds of millions of dollars of superannuation being invested in products that were unsuitable, high risk and costly," Ms Court said.
"We allege that no competent financial adviser could have recommended Australians invest large amounts of their superannuation in these funds, and that Interprac – as licensee – should have been alert and responsive to the significant risk this conduct posed to clients, but it failed on many levels."
First-Ever Action Against a Research House
The case against SQM Research marks a significant first for ASIC, being the initial time the regulator has targeted a research house. ASIC alleges the firm prepared misleading reports about the Shield Master Fund and fell short of expected standards when it published favourable ratings.
Ms Court emphasised the critical role research houses play as gatekeepers in the financial system. "We believe research houses are important gatekeepers and form part of a critical line of defence against poor quality investments or unsuitable products," she said.
"Given the important role research houses play in rating funds and investments, the community is entitled to expect that their reports will be accurate and based on appropriate information and analysis."
This legal action opens a new front in ASIC's ongoing investigation into the Shield and First Guardian collapses, signalling a tougher stance on all entities in the financial advice chain.
