ASIC cancels AFS licence of Capital Guard and Court orders winding up
ASIC has cancelled Capital Guard AU Pty Ltd's Australian Financial Services Licence after finding serious misconduct, including promoting a fake bond investment, misleading investors, and providing false documents. The company has since been placed into liquidation, while ASIC continues its investigation. Investors who may have suffered losses should seek legal advice promptly, as there may be limited time to pursue a complaint through AFCA.
On 29 June 2026, ASIC cancelled the Australian Financial Services Licence of Capital Guard AU Pty Ltd (Capital Guard) after finding that Capital Guard had engaged in serious misconduct, including dishonest conduct, misleading or deceptive conduct, and failures to comply with its obligations as an AFS licensee.
ASIC found that Capital Guard had:
- used, or caused to be created, a fake prospectus for a Macquarie Bank bond that did not exist;
- encouraged and facilitated client investment into the non-existent bond product;
- 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 issued by third parties; and
- provided false documents to an auditor.
ASIC also identified broader compliance failures, including failures to notify ASIC of changes in control, maintain proper accounts and oversight, and maintain adequate resources, competence and compliance arrangements required of an AFS licensee.
ASIC has stated that its investigation into Capital Guard and related persons and entities remains ongoing.
Capital Guard’s AFS licence cancellation is effective from 29 June 2026. However, ASIC has specified that Capital Guard’s licence continues in effect until 29 June 2027 for limited protective purposes, including requiring Capital Guard to remain a member of the Australian Financial Complaints Authority (AFCA) scheme and to maintain compensation arrangements for retail clients, including professional indemnity insurance. This means investors who have suffered loss may have a limited timeframe to bring a complaint to AFCA.
The Court has also appointed Robert Kirman and Jacinta Nielsen of McGrathNicol as joint and several liquidators of Capital Guard. ASIC has stated that its investigation indicates Capital Guard raised approximately $17.4 million from around 80 investors, and that only a small proportion of those funds remained in known company bank accounts and payment platforms.
Financial Dispute Legal would like to speak to investors who invested funds with Capital Guard, including investors who were encouraged to invest in corporate bonds, fixed-income products, or Macquarie Bank bond products promoted by Capital Guard, to discuss their circumstances and whether they have rights to recover compensation.
Investors can contact Financial Dispute Legal on 1300 433 533 or enquiry@fdlegal.com.au.
