meta_id 3289095

On June 29, 2026, the Australian Securities and Investments Commission (ASIC) cancelled the Australian Financial Services (AFS) licence of Capital Guard AU Pty Ltd (Capital Guard) following an investigation into dishonest conduct and regulatory breaches. ASIC found that Capital Guard engaged in misleading or deceptive conduct, dishonest conduct in connection with its financial services business, and failures in compliance, supervision, and resourcing. ASIC's investigation identified significant misconduct by Capital Guard, including the creation and use of a fake bond prospectus for a non-existent Macquarie Bank bond to solicit investor funds. Capital Guard encouraged and facilitated client investment into this fictitious product, obtaining at least $100,000 from investors. The firm made misleading statements on its website, misrepresenting its experience and altering third-party scam warnings. Capital Guard also provided false documents to its auditor. Beyond these specific breaches, ASIC identified broader operational failings, including failures to notify ASIC of changes in control, maintain proper accounts and oversight, and maintain adequate resources, competence, and compliance arrangements required to operate as an AFS licensee. Capital Guard held AFS licence number 498434 since August 15, 2017, though the previous financial services business was sold in 2024 to its current management. The licence cancellation is effective from June 29, 2026. However, the licence continues in effect until June 29, 2027 for limited protective purposes, specifically to maintain Capital Guard's membership in the Australian Financial Complaints Authority (AFCA) scheme and to ensure arrangements for compensating retail clients, including professional indemnity insurance cover. Capital Guard may apply to the Administrative Review Tribunal for a review of ASIC's decision. ASIC's investigation into Capital Guard remains ongoing.