ASIC cancelled Capital Guard’s AFS licence after finding dishonest conduct, including fake Macquarie Bank bonds, false audit documents and broader compliance failures in Australia.
ASIC Cancels Capital Guard’s Financial Services Licence
ASIChas cancelled theAFSlicence held by Capital Guard AU Pty Ltd (“Capital Guard”). ASIC found during its investigation that the company engaged in dishonest conduct, including selling bond products that did not exist and providing false documents to auditors. The licence cancellation took effect on June 29, 2026.
ASIC Identified Multiple Breaches by the Company
ASIC found that Capital Guard breached its obligations as an AFS licence holder. The findings involved misleading or deceptive conduct, fraudulent conduct in connection with a financial services business, and failures in compliance, supervision and resourcing. Specifically, ASIC found that Capital Guard engaged in the following conduct:
fabricated and used a false bond prospectus for a non-existent Macquarie Bank bond to solicit investor funds;
encouraged and assisted clients to invest in the non-existent bond product, including arranging payments and documents for the relevant transactions;
obtained at least $100,000 from investors by issuing non-existent bonds;
published misleading or deceptive statements on its website, including misrepresenting its experience and altering third-party warnings about its alleged fraudulent conduct;
provided false documents to auditors, constituting dishonest conduct.
Broader Operational Deficiencies Were Also Identified
In addition to the specific conduct outlined above, ASIC also found broader operational deficiencies at Capital Guard, including failures to notify ASIC of changes in company control as required, maintain proper accounts and supervision arrangements, and retain adequate resources, competence and compliance arrangements necessary to operate as an AFS licence holder. ASIC said the conduct indicated an ongoing risk of non-compliance and misconduct if the licence remained in effect. (Source: ASIC official media release, published: June 29, 2026)
Licence Cancellation Arrangements and Follow-up Procedures
Limited Protection Period Until June 2027
Although the licence has been cancelled, ASIC specified that the licence will continue until June 29, 2027, but only for the following limited protective purposes:
sections 912A(1)(g) and 912A(2)(c) of the Corporations Act 2001 require Capital Guard to maintain membership of theAFCAscheme;
section 912B of the Corporations Act requires Capital Guard to maintain compensation arrangements for retail clients, including holding professional indemnity insurance.
| Category | Details | Relevant Legal Basis | Time/Status |
|---|---|---|---|
| Licence cancellation | AFS licence No. 498434 was formally cancelled | Relevant provisions of the Corporations Act 2001 | Effective from June 29, 2026 |
| Limited protection period | The licence remains in effect only for specific protective purposes | Sections 912A(1)(g), 912A(2)(c) and 912B | Continues until June 29, 2027 |
| Investor losses | Investor funds were obtained through false bonds | —— | At least $100,000 |
| Review rights | The company may apply for review of the cancellation decision | ARTreview process | No review application has been filed |
Capital Guard may apply to the Administrative Review Tribunal for a review of ASIC’s decision to cancel its AFS licence. ASIC also stated that its investigation into Capital Guard is ongoing and that further enforcement action may follow.
Company Background and Regulatory Assessment
Capital Guard AU Pty Ltd had held AFS licence No. 498434 since August 15, 2017, although its previous financial services business was sold to the company’s current management in 2024. ASIC considered Capital Guard’s conduct to be misleading or deceptive and dishonest, contrary to the fundamental obligation of an AFS licensee to act efficiently, honestly and fairly.
ASIC said the enforcement action reflected its continued focus on combating investment scams, particularly fraudulent conduct that uses trusted brand identities or claims to offer fixed-income or bond products to retail investors. (Source: ASIC official media release, published: June 29, 2026)
Assistance Channels Available to Affected Investors
Investors with concerns about financial advice or investment materials they previously received may consider lodging a complaint with AFCA. AFCA is Australia’s external financial dispute resolution body and is required to handle all complaints independently and fairly, with its service free for consumers. Investors may contact AFCA by calling the toll-free number 1800 931 678 between 9:00 a.m. and 5:00 p.m. Australian Eastern Standard Time, or submit a complaint online through AFCA’s official channels.
Investors experiencing financial hardship may also call the National Debt Helpline on 1800 007 007 between 9:30 a.m. and 4:30 p.m. local time, Monday to Friday, to receive free assistance from a financial counsellor, or refer to financial counselling and investment scam prevention information provided on ASIC’s Moneysmart website.
Questions About Capital Guard’s Licence Cancellation
Why did ASIC cancel Capital Guard’s AFS licence?
ASIC’s investigation found that Capital Guard sold false products linked to non-existent Macquarie Bank bonds and provided false documents to auditors. These actions constituted misleading, deceptive and dishonest conduct and breached the fundamental obligations of an AFS licensee.
After the licence cancellation, does Capital Guard lose all legal obligations?
No. ASIC specified that the licence remains in effect for limited protective purposes until June 29, 2027, including maintaining AFCA membership and compensation arrangements for retail clients, including professional indemnity insurance.
How can affected investors seek help?
Investors may contact AFCA to lodge a complaint, and its service is free for consumers. Those experiencing financial hardship may also call the National Debt Helpline to receive free assistance from a financial counsellor.
Can Capital Guard challenge ASIC’s decision?
Yes. According to the announcement, Capital Guard has the right to apply to the Administrative Review Tribunal (ART) for a review of the licence cancellation decision.
