In this Funds Update for 9 August:
- ASIC extends FFSP AFSL exemptions for another 12 months.
- Federal Court orders $11.3 million penalty in greenwashing case.
- ASIC suspends another AFSL for failing to lodge financial reports.
ASIC extends FFSP AFSL exemptions for another 12 months
On 31 July 2024, ASIC announced an extension of a further 12 months for the transitional arrangements for the current foreign financial services provider (FFSP) Australian financial services licence (AFSL) exemptions (the passporting exemptions and limited connection exemption) which will now expire on 31 March 2026. These FFSP exemptions were previously set to expire on 31 March 2025.
For further information, please refer to our article about the extension available here.
Back ^
Federal Court orders $11.3 million penalty in greenwashing case
On 2 August 2024, the Federal Court issued a penalty judgment of $11.3 million against a superannuation trustee for greenwashing contraventions. This was a result of ASIC’s first greenwashing case brought before the Federal Court in September 2023.
The superannuation trustee had previously admitted to making misleading statements on its website about its “Sustainable Plus” investment options, saying that those investment options screened out investments in carbon intensive fossil fuels, gambling companies and alcohol production. However, those options provided investment exposure to companies involved in the extraction or sale of carbon intensive fossil fuels, as well as alcohol producers and gambling companies.
In ordering the penalty, the Court characterised the contraventions as “serious” and found that they arose from “failures … to implement adequate systems” to ensure the accuracy of claims made.
You can read the full penalty judgment here, and the ASIC media release here.
Back ^
ASIC suspends another AFSL for failing to lodge financial reports
On 31 July 2024, ASIC announced that it had suspended the AFSL of a fund manager for failing to meet audit and financial reporting lodgement requirements for the 2022 and 2023 financial years.
This follows similar suspensions we have reported on in previous Funds Updates.
Back ^
Disclaimer
The articles published on this website, current at the dates of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.