Australian Securities & Investments Commission secures $3.5 million Federal Court penalty against ACBF Funeral Plans for false Aboriginal ownership claims

The Australian Securities & Investments Commission announced that the Federal Court has ordered ACBF Funeral Plans Pty Ltd (in liquidation) to pay a AUD 3.5 million penalty for misrepresenting to consumers that it was Aboriginal owned or managed when it was not. The order follows ASIC’s successful appeal and brings total penalties against ACBF to AUD 4.7 million, including a separate AUD 1.2 million penalty ordered in September 2023 for misrepresenting that plan holders would receive a lump sum payment. The penalty relates to ACBF’s promotion and sale of the Aboriginal Community Funeral Plan, a funeral expenses insurance policy marketed primarily to Aboriginal consumers. Justice Goodman accepted ASIC’s submission that the Aboriginal ownership or management representation was deliberate and callous and involved egregious conduct; the Full Federal Court had previously overturned part of an earlier decision and remitted the matter to the Federal Court to determine the appropriate penalty. ASIC cannot enforce either penalty without leave of the Court because ACBF is in liquidation, and separate civil penalty proceedings ASIC filed against five former directors and officers of ACBF and Youpla Group remain ongoing.