An ASX-listed group tied to the $1 billion Shield and First Guardian managed fund failures has launched Federal Court action against the Australian Financial Complaints Authority and investor Melinda Kee. Court filings show InterPrac Financial, already under pressure over its role in the debacle, is trying to block or limit compensation orders stemming from AFCA determinations.
InterPrac’s authorised financial advisers are alleged to have taken kickbacks to funnel clients into the defective funds, which later imploded. Almost 12,000 people saw their superannuation wiped out in the collapse.
Kee, who lost almost her entire retirement savings in the failed schemes, has become a key organiser for affected investors and a visible figure in the fight for redress. She has met repeatedly with government departments and regulators as they piece together how the products were sold and supervised.
At the same time, she coordinates online support groups for other victims, helping them navigate complaints processes and regulatory updates. Her prominence now leaves her directly targeted in the court dispute.
InterPrac first filed proceedings only against AFCA, seeking to challenge the watchdog’s approach to liability and compensation in the Shield and First Guardian cases. The legal strategy shifted after a Federal Court judge directed the company to add complainants as defendants so the claims could move ahead properly.
In response, InterPrac this week formally joined Kee to the case as a “necessary party”, turning a regulator-focused challenge into a more personal confrontation with an individual investor.
