ASIC seeks to wind up Capital Guard AU

ASIC is seeking to wind up fixed-income specialist Capital Guard AU amid "serious concerns" about its management and how it handled investor funds mounting to about $17.4 million.

ASIC told the Supreme Court of New South Wales it seeks the appointment of an independent liquidator to take control of Capital Guard, investigate its affairs, and preserve and recover assets where possible.

ASIC's investigations counted 80 investors who are expected to be affected after finding that Capital Guard allegedly 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, ASIC said, noting auditors failed to detect false information provided to it.

Capital Guard also issued a fake bond prospectus for a Macquarie Bank bond that did not exist, which was used to solicit investor funds.

ASIC reports a "breakdown" of the company's governance and management but would not release names of the people behind the scheme.

Capital Guard also failed to comply with a range of regulatory and reporting obligations.

The company was run by sole director Mark Tasiyan and headquartered at Level 36, 1 Macquarie Place, Sydney. It touted itself as a "leading provider of financial products designed to promote wealth growth and safeguard investments" with "expertise in Australian fixed-income instruments such as bonds and debentures."

It also promised to offer "responsible investment strategies to help clients build robust portfolios."

The company held an AFSL since 15 August 2017, however the previous financial services business was sold in 2024 to its current management.

Capital Guard's website is now inactive. Victims on customer review platform Trustpilot wrote they cannot contact their Capital Guard account managers, while their calls and emails go unanswered.

ASIC cancelled Capital Guard's AFSL on June 29. The matter has been listed for a directions hearing on July 20.