The corporate regulator is looking to force a Sydney-based financial planner into liquidation over “serious concerns” about how it handled $17.4 million of investors’ funds.

The Australian Securities and Investments Commission is seeking an independent liquidator for Capital Guard at the NSW Supreme Court.

It comes amid concerns the firm promoted fake bonds to investors, provided false information to its auditor and that only a small proportion of the $17.4 million it raised remains in known Capital Guard accounts and platforms.

Capital Guard’s financial services licence was cancelled late last month.

ASIC found the company promoted a fake Macquarie Bank bond, made misleading statements on its website and engaged in serious misconduct.

“ASIC is seeking the appointment of an independent liquidator to take control of Capital Guard, investigate its affairs, and preserve and recover assets where possible,” ASIC said.

“ASIC has taken this 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.”

The company received the funds from about 80 investors.

The court action follows ASIC finding Capital Guard received at least $100,000 for a bond that did not exist.

Capital Guard also encouraged and allowed investment into the non-existent bond by arranging payment and documentation for the transactions, according to ASIC.

This comes despite Capital Guard marketing itself as “a team of dedicated financial experts with a passion for helping individuals and businesses achieve their growth potential”.

ASIC said that investor funds were used in ways that were “inconsistent” with how the firm told investors their money was being invested.

The company also had a breakdown in its governance and management alongside failing to comply with regulatory and reporting obligations, ASIC said.

Since its licence was revoked last week, Capital Guard has shut down its website.

The matter will be heard on July 20 and ASIC’s investigation into the company continues.