You Can Run, But You Can’t Hide: ASIC to Make a Stand Against Unethical Practices in Superannuation

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The Australian Securities and Investments Commission (ASIC) is taking a stand to stop unethical superannuation practices – you can run, but ASIC won’t let you hide!

In a groundbreaking move, the Australian Securities and Investments Commission (ASIC) is taking legal action against a significant superannuation trustee for making supposedly deceptive claims about the sustainability and features of some investment products- an act known as “greenwashing”.

According to the Australian Securities and Investments Commission (ASIC), a corporate pension fund deliberately deceived its customers by investing in enterprises linked to alcohol, gambling and fossil fuels – activities that directly contradict its proclaimed commitment to sustainability and morality.

The significant lawsuit displays ASIC’s pledge to increase monitoring and prosecution action against deceptive, exaggerated or unsubstantiated statements concerning financial products, as outlined in its 2023 Enforcement Priorities.

ASIC has issued a firm warning that it will not tolerate deceptive behaviours in marketing sustainable financial products, as fraudulent claims and greenwashing are becoming increasingly prevalent. The organization made its commitment to maintaining vigilance against such activities going forward.

“This case reinforces ASIC’s commitment to taking firm action against promoters of unethical and unsustainable practices in the superannuation sector,” said the commissioner.

“We will continue to pursue legal action wherever we find evidence of deceptive or misleading statements, as well as other law violations.”

The recent lawsuit reminds investors that ASIC does not tolerate dishonest practices in the superannuation sector. So if you’re tempted to engage in greenwashing, think twice – ASIC will catch up with you eventually!

This case sets a precedent in Australia but also reflects the global trend of prioritizing climate change and its damaging effects. Enforceable laws and regulations created by foreign governments have caused an increase in greenwashing claims over the past year, including some class actions filed against companies in US courts.

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