ASIC has revoked Capital Guard AU Pty Ltd’s AFS licence after finding dishonest conduct involving fake Macquarie Bank bonds, misleading statements and false documents submitted to auditors.
ASIC Revokes Capital Guard Financial Services Licence Over Fake Macquarie Bank Bonds
The Australian Securities and Investments Commission (ASIC) revoked the Australian financial services (AFS) licence held by Capital Guard AU Pty Ltd (“Capital Guard”) on 29 June 2026. ASIC’s investigation found that the company had engaged in dishonest conduct, including selling non-existent bond products and submitting false documents to auditors.
In its notice, ASIC stated that Capital Guard had breached its obligations as an AFS licensee. The findings covered misleading or deceptive conduct, fraudulent conduct in connection with a financial services business, and failures in compliance, supervision and resource allocation.
(Source: ASIC, 26-141MR, published: 2 July 2026.)
Specific Misconduct Identified by the Investigation
Sales of Fake Macquarie Bank Bonds
ASIC’s investigation found that, between 2024 and 2026, Capital Guard engaged in a series of fraudulent solicitation activities involving a Macquarie Bank bond product that did not exist. These included:
creating, or causing to be created, a false Macquarie Bank bond prospectus and using it to raise funds from investors;
encouraging and assisting clients to invest in the non-existent bond product, including arranging transaction payments and related documents on their behalf;
obtaining at least USD 100,000 from investors through the sale of the fictitious bond;
publishing misleading or deceptive statements on the company’s website, including misrepresenting its own industry experience and altering third-party scam warnings;
submitting false documents to auditors, constituting dishonest conduct.
Broader Deficiencies in Company Operations
In addition to the solicitation conduct described above, ASIC found that Capital Guard had systemic deficiencies in corporate governance and compliance. Specifically, the company failed to meet the following obligations:
reporting changes in company control to ASIC, and maintaining appropriate accounting records and internal supervision mechanisms;
maintaining sufficient resources, professional competence and compliance arrangements required for the proper operation of an AFS licensee.
ASIC considered that the above conduct indicated an ongoing risk of non-compliance and improper business operations if the licence remained in force. ASIC’s investigation into Capital Guard is continuing.
Effective Arrangements for the Licence Cancellation and Limited Protective Period
Limited Protective Effect Until 29 June 2027
ASIC made clear that although the licence was revoked on 29 June 2026, it will remain in effect for the following limited purposes until 29 June 2027 in order to protect the interests of existing retail clients:
the obligations under sections 912A(1)(g) and 912A(2)(c) of the Corporations Act 2001, requiring Capital Guard to remain a member of the Australian Financial Complaints Authority (AFCA) scheme;
the obligations under section 912B of the Corporations Act 2001, requiring Capital Guard to maintain compensation arrangements for retail clients, including holding professional indemnity insurance.
Review Pathway Available to the Company
Under the current procedure, Capital Guard may apply to the Administrative Review Tribunal (ART) for a review of ASIC’s decision to revoke its AFS licence. As of publication, no public information indicates that the company has filed such an application.
Key Timeline of the Case
| Date | Event | Amount/Entity Involved | Legal Basis |
|---|---|---|---|
| 2017-08-15 | Capital Guard AU Pty Ltd obtained an AFS licence (No. 498434) | Capital Guard AU Pty Ltd | — |
| 2024 | The company’s existing financial services business was sold to the current management | Current management | — |
| 2026-06-29 | ASIC formally revoked the company’s AFS licence | Investor losses of at least USD 100,000 | Section 912A of the Corporations Act |
| 2027-06-29 | Expiry date of the licence’s limited protective effect | Compensation arrangements for retail clients | Section 912B of the Corporations Act |
Regulatory Background and ASIC’s Enforcement Direction
Capital Guard AU Pty Ltd had held AFS licence number 498434 since 15 August 2017, but the company’s existing financial services business was sold to the current management in 2024. ASIC found that Capital Guard’s conduct was misleading or deceptive and dishonest in nature, and inconsistent with the core obligation of AFS licensees to operate “efficiently, honestly and fairly”.
ASIC stated that the enforcement action reflected its continued focus on combating investment scams, particularly conduct that uses trusted brand names or fixed-income and bond-style products to target retail investors.
(Source: ASIC, 26-141MR, published: 2 July 2026, Background section.)
Questions About Capital Guard
Why was the bond product sold by Capital Guard found to be fake?
ASIC’s investigation confirmed that the Macquarie Bank bond product used by the company to solicit investors did not exist. The related prospectus was forged or created at the company’s direction and was used to obtain investor funds.
After ASIC revoked the licence, did Capital Guard immediately cease all legal obligations?
No. Until 29 June 2027, the licence remains in effect for two limited matters: AFCA membership and compensation arrangements for retail clients, including professional indemnity insurance, in order to protect existing client interests.
What channels are available for affected investors to seek redress?
Relevant complaints may be submitted to AFCA. In addition, ASIC’s investigation remains ongoing, and further regulatory or enforcement outcomes may follow.
Can Capital Guard challenge the cancellation decision?
Yes. Under the relevant procedure, the company may apply to the Administrative Review Tribunal (ART) for a review of ASIC’s decision to revoke the licence.
