The Australian Securities and Investments Commission (ASIC) has discontinued legal action against a Queensland man in relation to the failed investment group Westpoint.

The regulator said it had discontinued the charges against Mark Pirimona Shepherd, of Benowa Waters, Queensland, relating to the provision of a financial service on behalf of Lancer group Pty Ltd and recommendations to invest in promissory notes issued by various Westpoint Mezzanine companies.

ASIC said it had decided to discontinue the action following a review undertaken by the Commonwealth Director of Public Prosecutions.

The regulator said that action was continuing against a director of the Lancer group, Barry William Silver, who has been charged with aiding, abetting, counselling and procuring his company, Lancer Group, to provide a financial service.