The Australian Securities & Investments Commission has cancelled the Australian Financial Services licence of Capital Guard AU Pty Ltd after finding dishonest conduct and multiple licence breaches, including the sale of a fake Macquarie Bank bond and the provision of false documents to an auditor. ASIC found that Capital Guard used or caused the creation of a fake bond prospectus, solicited investor funds for a non-existent product, and obtained at least AUD 100,000 from investors. The findings also covered misleading or deceptive statements on Capital Guard’s website, including misrepresentations about its experience and altered third-party scam warnings. Beyond the fake bond activity, ASIC identified broader failures to notify changes in control, maintain proper accounts and oversight, and ensure adequate resources, competence and compliance arrangements. ASIC said the conduct indicated a risk of ongoing non-compliance and misconduct if the licence remained in force. The cancellation took effect on 29 June 2026, although the licence will continue until 29 June 2027 for limited protective purposes tied to membership of the Australian Financial Complaints Authority scheme and retail client compensation arrangements, including professional indemnity insurance. ASIC’s investigation remains ongoing, and Capital Guard may apply to the Administrative Review Tribunal for a review of the cancellation decision.

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