Sequoia Financial Group has rescinded its original figures for revenue and hedging expenses for the 2017 financial year after intervention by ASIC.
According to an ASX statement, February 2018 will see ASX-listed wealth manager Sequoia issue a “restatement” of its financial report comparables for the period ending June 2017.
“ASIC raised concerns with Sequoia regarding their treatment of revenue in its financial report for the year ended 30 June 2017,” according to a communication by the regulator acknowledging Sequoia’s restatement.
ASIC’s communication comes weeks after another released in December which called on companies to provide information in financial reports that would be “useful and meaningful”.
Sequoia’s ASX statement indicates the firm will restate the financial comparable results of the prior period in relation to “deferred revenue and deferred hedging expenses of Investment Solutions operated through Sequoia Specialist Investment Pty Ltd”.
The restatement will see a decrease of revenue, hedging costs, receipts from customers and payment suppliers.
In its annual report for the year ending 30 June 2017, Sequoia had stated its revenue to be $44,364,946, with the revised amount bringing it down to $35,084,460.
Hedging expenses was revised by more than half its original amount from $16,412,144 to $7,131,658, while the new figure for receipts from customers fell nearly ten million from $59,802,560 to $50,522,074.
The revised amount for payments to suppliers also saw a reduction of almost ten million, from $53,771,003 to $44,490,517.
The restatement will not have an effect on the reported profit before tax, ASIC said.
Sequoia also announced in the same release it had increased its stake in three partially owned subsidiaries, with its holdings in financial planning outfit InterPrac rising to 100 per cent, holdings in Finance TV Pty Ltd to rising to 77.07% as well as the purchase of My Own Super Fund Pty Ltd’s client base.
Sequoia also acquired Morrison Securities in September 2017.
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