The Australian Securities & Investments Commission (ASIC) has commenced court proceedings against Australian Unity Funds Management Limited, alleging it failed to take reasonable steps to ensure retail investors in the Select Income Fund were within the product’s defined target market under the design and distribution obligations. Australian Unity, as responsible entity of the fund, made three Target Market Determinations between 5 October 2021 and 5 October 2023. ASIC alleges that although prospective “non-advised” investors were asked to complete a questionnaire, responses were not reviewed until August 2023 and were not used to screen investors until 6 October 2023, despite interests being issued throughout the period. The regulator argues that issuing a questionnaire alone does not meet the obligation to actively assess whether investor responses are consistent with the target market before issuing product interests.
Australian Securities & Investments Commission 2025-06-11
Australian Securities & Investments Commission sues Australian Unity Funds Management over alleged failure to screen Select Income Fund investors against target market
The Australian Securities & Investments Commission (ASIC) is suing Australian Unity Funds Management Limited for allegedly not ensuring retail investors in the Select Income Fund met the target market criteria, as required by design and distribution obligations. ASIC claims that although a questionnaire was issued to prospective "non-advised" investors, responses were not reviewed or used for screening until October 2023, despite ongoing issuance of interests. The regulator argues that issuing a questionnaire alone does not fulfill the obligation to actively assess investor suitability.