The corporate watchdog has handed City Index Australasia (CIA) and its director, Blair Jason Travers, a 10-year ban from the financial services industry.
ASIC also ordered CIA and Travers to remove all material used to promote its cold-calling scam, the corporate regulator said in a statement.
Investors involved in the scam will receive some of their money back following the action taken by ASIC in the Federal Court in Melbourne.
About $38,000 of investor funds, which was previously frozen, would be distributed back on a pro-rata basis, ASIC said.
ASIC said it believed CIA conducted the cold calling between 24 August 2011 and 16 September 2011, where the company directed contacted investors to a website containing false financial product information.
CIA did not hold an Australian financial services licence (AFSL), required under the Corporations Act, at any stage, it said.
The court found CIA falsely stated it was associated with City Index Australia, an unrelated AFSL holder, and that it was a holder of an AFSL.
CIA told investors returns would be generated through investments in contracts for difference, spread betting and foreign exchange markets.
The court found Travers "was directly or indirectly knowingly concerned in or party to and was otherwise involved in the contraventions of CIA".
ASIC commissioner Peter Kell said the removal of dishonest operators from the financial services sector was critical to creating an environment where investors could feel confident when making decisions.
"While victims of CIA will receive some compensation following the urgent court orders we obtained in September last year to freeze investor funds, the scam will also be shut down and its operator banned from the financial services industry," Kell said.
"This is crucial in preventing further people from falling victim to these scams."
