Funds Update - 28 March 2025

In this Funds Update for 28 March 2025:

1. $10.5 million greenwashing penalty imposed on superannuation trustee
2. Bill for new FFSP AFSL exemptions lapses

$10.5 million greenwashing penalty imposed on superannuation trustee 

On 18 March 2025, the Federal Court imposed a $10.5 million penalty on a superannuation trustee in relation to a greenwashing case brought by ASIC.

Earlier, in June 2024, the Federal Court had concluded that the superannuation trustee contravened the law when it had invested in various securities that it had claimed were eliminated or restricted by its environmental, social and governance (ESG) investment screens.

In handing down this penalty decision, Justice O’Callaghan recognised that:

• the nature of the contraventions were ‘serious’;
• the contraventions took place over the course of approximately two and a half years;
• the investments made were substantial; and
• there was a lack of safeguards in place for senior management to prevent false or misleading conduct.

Greenwashing is one of ASIC’s 2025 enforcement priorities and this case is ASIC’s third greenwashing court outcome.

The full decision is available here, and the ASIC media release concerning the decision is available here.

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Bill for new FFSP AFSL exemptions lapses

Today the Government called a federal election, Parliament has been dissolved and the new bill to enact new foreign financial service provider (FFSP) Australian financial services licence (AFSL) exemptions has lapsed.

We must wait for an update from the returned Government after the election in relation to the bill and from ASIC in relation to whether the current 31 March 2026 termination date for the limited connection and passporting exemptions may be extended.

For additional information on this FFSP AFSL update, please refer to our article linked here.

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