The Government has removed the finance company Viaduct Capital from its retail deposit guarantee scheme.
Last month, Viaduct starting raising $50 million from investors to take advantage of falling property prices.
But the Treasury says it withdrew the guarantee to Viaduct because the benefits of it may go to people who are not supposed to get it.
Treasury says all existing deposits made up to Monday will continue to be covered.
It says Viaduct, which is headed by former Capital Properties boss Nick Weevers, has not failed, and there's been no default to trigger the claims process under the guarantee.
For its part, Viaduct says it's extremely surprised and disappointed at the Treasury's actions, and intends following it up with them. Meanwhile, it says it's business as usual.
