ASIC has urged investors to avoid Connaught Investment Group, because it offers fake investment opportunities.

The St Leonards-registered group, which also uses the name Connaught Financial Planning, operates without an Australian financial service licence (AFSL) and uses the Australian business number (ABN) of an unrelated company with a similar name.

The ABN 52 002 102 203 quoted on the group's website actually belongs to the unrelated company Connaught Consultants (Finance) Pty Ltd - a legitimate AFSL holder that is based in the neighbouring Sydney suburb of Crows Nest.

The St Leonards address for the Connaught Investment Group is actually the address of a dance studio.

"ASIC's investigation has revealed that persons purporting to be representatives of Connaught Investment Group are cold calling people for investment purposes while quoting the AFSL and Australian company number of a legitimately registered AFSL holder," ASIC said.

"They claim to offer advice on warrants, futures, commodities trading, foreign exchange trading, portfolio administration as well as online trading and investor seminars."

The prospective investors are asked to transfer funds into a bank account in the name of Diversified Strategies Pty Ltd, which is registered as an Australian company and has the same false business address as the Connaught Investment Group.

Investors are then given a password to a website, which enables them to check the fictional status of their investment.

ASIC is presently taking steps to have the website removed.

"Making a few basic checks on your investment, before you sign away your hard-earned money, is critical," ASIC commissioner Greg Tanzer said on Friday.

"Investors need to be cautious when offered unsolicited investment advice.

"I strongly urge potential investors to scrutinise all investment opportunities closely and seek professional, licensed advice before making investment decision."

In May 2012, ASIC issued a public warning notice about Dellingworth Pty Ltd, an unlicensed financial services business purporting to be based on the Gold Coast.

In February 2012, unlicensed financial planning business Golden Sparrow Pty Ltd was wound up following an application by ASIC to the Supreme Court of Queensland.

In December 2011, a joint operation between the Queensland Police Service, the Australian Crime Commission and ASIC saw multiple search warrants executed across a number of premises and a call centre, including on a company known as West Trade, targeting individuals allegedly involved in investment scams.