Equity Trustees slapped with multiple ASIC infringement notices
Equity Trustees has paid three infringement notices issued by ASIC in which the corporate regulator alleged it made misleading statements about investments in a sustainable bond fund.
The firm paid $56,340 on 13 June to comply with the notices regarding actions in its capacity as the responsible entity of the Artesian Green and Sustainable Bond Fund.
Between 10 April 2024 and 7 November 2024, the fund’s product disclosure statement, target market determination and website stated that the fund invested in green, sustainable and social corporate bonds issued by companies.
However, at that time, the fund had significant exposure to government and supranational bonds (not issued by corporations), which were inconsistent with its declared strategy and objectives.
ASIC deputy chair, Sarah Court, emphasised the importance of investment governance to trustees.
“A responsible entity must have measures in place for ensuring it complies with its obligations as an AFS licensee. These include having adequate governance controls and procedures to ensure that disclosures made in relation to investments by managed investment schemes are accurate and are not misleading.
“ASIC’s action should serve as a reminder to trustees that they need to ensure they take their investment governance responsibilities seriously.”
Payment of an infringement notice is not an admission of guilt or liability.
Since the start of 2025, the regulator has issued infringement notices to Australian Advice Network, IA Advice, Sherrin Partners, Chapter Two Holdings, Zurich Australia, and Australian Retirement Trust.
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