ASIC moves for winding up of Capital Guard
After cancelling the Australian Financial Services License of purported bond trader, Capital Guard late last month, the Australian Securities and Investments Commission (ASIC) has now moved for the winding up of the business in the NSW Supreme Court.
ASIC has announced it has applied to the Supreme Court of NSW for the winding up of Capital Guard AU Pty Ltd on just and equitable grounds and is seeking the appointment of an independent liquidator to take control of the company, investigate its affairs and preserve and recover assets where possible.
It said it had taken the action because it has serious concerns about Capital Guard’s management, the handling of investor funds, and whether particular bonds offered to investors existed as represented.
ASIC said it is concerned that:
- Capital Guard appears to have promoted bond investments that may not have existed or may not have been available for investment as represented
- investor funds appear to have been used in ways that are inconsistent with how Capital Guard told investors those funds would be invested
- Capital Guard appears to have provided false information to its auditor
- there has been a breakdown in the company’s governance and management, and
- Capital Guard has failed to comply with a range of regulatory and reporting obligations.
ASIC said it’s investigations to date indicate that Capital Guard has raised approximately $17.4 million from around 80 investors, and that only a small proportion of those funds remain in known Capital Guard bank accounts and payment platforms.
ASIC cancelled Capital Guard’s Australian financial services (AFS) licence on 29 June 2026 after finding it had engaged in serious misconduct, including promoting a fake Macquarie Bank bond, providing false documents to its auditor and making misleading statements on its website.
The matter has been listed for directions hearing on 20 July 2026.
ASIC’s investigation into Capital Guard and related persons and entities remains ongoing.
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