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Melbourne-based financial services group Sequoia Financial Group (ASX: SEQ) has confirmed the immediate resignation of CEO Garry Crole, capping a turbulent stretch marked by a regulatory scandal, a collapsed divestment, a mass adviser exodus and sweeping board changes.
Crole's departure comes as the company continues to deal with the fallout from the InterPrac Financial Planning subsidiary at the centre of civil penalty proceedings brought by the Australian Securities and Investments Commission (ASIC) over alleged compliance failures tied to the Shield Master Fund and First Guardian managed investment schemes.
Alex Fabbri, Sequoia's head of corporate finance, has been appointed interim CEO while the board searches for a permanent replacement.
David Hentschke, who joined the board as a non-executive director in May this year, has been named interim chairman following the earlier resignation of long-serving chairman Michael Ryan.
Crole says his resignation is in the best interests of the company, although he will remain a substantial shareholder of the group.
"It has been a privilege to lead Sequoia," says Crole, who was appointed CEO in 2019.
"I am proud of what the group and its people have built, and I thank our advisers, clients and employees for their support over many years. I wish the board and the team every success."
The board paid tribute to Crole's "significant contributions" to the company and the broader financial services industry over a career spanning more than four decades.
The leadership shake-up is the latest in a series of upheavals that have reshaped Sequoia's board and executive ranks since late 2025, when the InterPrac scandal first surfaced publicly.
ASIC filed civil penalty proceedings in October last year alleging that InterPrac's former authorised representatives advised more than 6,800 clients to invest $677 million of superannuation into Shield and First Guardian products.
ASIC Deputy chair Sarah Court alleged InterPrac's "oversight and compliance failures exposed thousands of Australians to poor advice and significant financial risk".
The regulator's case alleges Crole, in his capacity as InterPrac's managing director and responsible manager, acknowledged serious issues with the Shield and First Guardian schemes but failed to enforce a hold on new investments.
The fallout for the group saw five platform providers restrict InterPrac from writing new business from October last year, triggering a rapid decline in adviser numbers from 282 to 176 in under five months.
The Australian Financial Complaints Authority received 843 complaints related to the matter as of February this year.
Sequoia attempted to offload InterPrac to Conquest Financial Group for just $50,000, having already written off $4.7 million in InterPrac intangible assets in February this year and flagging a further write-down of $7.5 million if the sale did not proceed.
The deal was terminated in May, leaving Sequoia to manage the embattled subsidiary directly.
Prior to that, in April, Sequoia labelled as “unfounded” claims by ASIC that the planned sale of InterPrac could adversely affect investors caught up in the collapse of the Shield and First Guardian Master Funds.
Chairman Ryan resigned in April, citing the expansion of other board responsibilities.
The group's most recent half-year results for the six months to 31 December 2025 showed revenue of $63.4 million, up 4.6 per cent, and operating profit of $4.8 million, up 75.9 per cent.
However, one-off costs dragged the bottom line to a net loss of about $250,000, and the interim dividend was halved to 1c per share from 2c.
As interim CEO, Fabbri brings 40 years of experience working with listed companies as an adviser across financial markets, wealth management and corporate finance.
Since joining Sequoia Financial in 2019, Fabbri has been a member of the group's executive leadership team and is well placed to lead the business during this transition.
"The board believes the depth of experience within the leadership team supports continuity for all stakeholders and positions the company for renewal in the next phase of its growth and development," says Sequoia Financial in today's ASX announcement.
"The search for a permanent chairman and group chief executive officer will consider both internal and external candidates."
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