Australia’s securities watchdog ASIC filed court papers Monday seeking immediate closure of Sydney-based Capital Guard AU Pty Ltd, alleging the firm raised approximately seventeen million Australian dollars from roughly eighty investors through bond products that may have never existed. The regulator told the Supreme Court of New South Wales only a small fraction of the funds remain in traceable accounts, with the whereabouts of the balance now under investigation.
ASIC is requesting either fast-tracked wind-up proceedings or immediate appointment of provisional liquidators from McGrathNicol to seize control of company records while litigation proceeds. The regulator cited serious concerns about management conduct, investor fund handling, and alleged false statements provided to auditors. This marks the second suspected fake bond scheme in Australia within twelve months, following last September’s Global Investment Marketing case involving eight million dollars in purported HSBC and Barclays securities.
FXnCO Insight
Australian fund managers and broker-dealers should immediately review due diligence protocols for fixed income product sourcing, as regulatory scrutiny on bond authenticity verification intensifies across retail investment channels.
Source: Finance Magnates