The Australian Securities & Investments Commission (ASIC) has commenced civil penalty proceedings in the Supreme Court of New South Wales against Fiducian Investment Management Services Limited, alleging it breached its duties as responsible entity of the Diversified Social Aspirations Fund and engaged in misleading and deceptive conduct in ESG-related disclosures in the fund’s Product Disclosure Statement (PDS). ASIC is seeking declarations, pecuniary penalties and adverse publicity orders. The fund, marketed as a socially responsible and ethical option and available for investment between 2015 and 2024, invested via underlying fund managers and underlying investment funds with their own ESG methodologies and tolerance thresholds. ASIC alleges those processes did not align with the approach described in the PDS, including statements that portfolios aimed to be positive for society and the environment and to avoid specified harmful industries and activities. Further allegations include that the PDS falsely stated the responsible entity would monitor underlying fund exposures and investment styles despite lacking the information to do so, and that it failed to review underlying investments for consistency with the PDS, identify and control ESG-related risks in compliance documents, follow its risk management framework and PDS review procedures, and engage or employ an ESG expert. ASIC also alleges failures to record and lodge investor complaints and to address concerns that the fund held investments contrary to PDS representations, including holdings in BHP Billiton, Rio Tinto, Woodside Petroleum, Newcrest Mining and Orica, while continuing to reissue the PDS without changes for more than nine years. ASIC characterised the matter as its fourth greenwashing civil penalty action and its first against a responsible entity focused on alleged governance and compliance failures.
Australian Securities & Investments Commission 2025-10-03
Australian Securities & Investments Commission launches civil penalty case against Fiducian Investment Management over alleged ESG fund misstatements and governance failures
The Australian Securities & Investments Commission (ASIC) has initiated civil penalty proceedings against Fiducian Investment Management Services Limited in the Supreme Court of New South Wales for alleged breaches of duties and misleading ESG-related disclosures in the Diversified Social Aspirations Fund's Product Disclosure Statement (PDS). ASIC claims the fund's ESG processes did not align with PDS descriptions, including unmonitored underlying investments and unaddressed investor complaints. This is ASIC's fourth greenwashing civil penalty action and its first targeting a responsible entity for governance and compliance failures.