The Australian Securities and Investments Commission (ASIC) has cancelled the Australian Financial Services (AFS) licence of Capital Guard AU Pty Ltd.

The regulator has found that the firm had engaged in dishonest conduct including the selling of a fake bond and providing false documents to its auditor.

The licence was cancelled after ASIC found Capital Guard had contravened its obligations as an AFS licensee, based on findings including misleading or deceptive conduct, dishonest conduct in connection with its financial services business, and failures in compliance, supervision, and resourcing.

ASIC found that Capital Guard:

• used or caused to be created a fake bond prospectus for a Macquarie Bank bond that did not exist, which was used to solicit investor funds;
• encouraged and facilitated client investment into that non-existent bond product, including arranging payment and documentation for transactions;
• obtained at least $100,000 from investors for a bond that did not exist;
• made misleading or deceptive statements on its website, including misrepresenting its experience and altering scam warnings about it that were issued by third parties; and
• provided false documents to an auditor, amounting to dishonest conduct.

ASIC also identified broader failings in Capital Guard’s operations, including failures to:

• notify ASIC of changes in control and to maintain proper accounts and oversight; and
• maintain adequate resources, competence and compliance arrangements required to operate as an AFS licensee.

The regulator further considers that the conduct outlined indicates a risk of ongoing non-compliance and misconduct if the licence were to remain in force.

ASIC’s investigation into Capital Guard remains ongoing.

The licence cancellation is effective from 29 June 2026.

ASIC has specified that the licence continues in effect until 29 June 2027 for only limited protective purposes including:

• sections 912A(1)(g) and 912A(2)(c) of the Corporations Act 2001 (Corporations Act), to the extent they require Capital Guard to be a member of the AFCA scheme; and
• section 912B of the Corporations Act, to the extent it requires Capital Guard to have arrangements for compensating retail clients including the holding of professional indemnity insurance cover.

Capital Guard may apply to the Administrative Review Tribunal (ART) for a review of ASIC’s decision to cancel its AFS licence.

Capital Guard AU Pty Ltd has held AFS licence number 498434 since 15 August 2017, however the previous financial services business was sold in 2024 to its current management.