ESG Enforcement Tracker

Key facts:

ASIC had commenced civil penalty proceedings against Fiducian Investment Management Services Limited in connection with its representations about the Diversified Social Aspirations Fund, which was marketed as a socially responsible investment option between 2015 and 2024. ASIC alleged that Product Disclosure Statements issued for the fund contained ESG and systems statements that were liable to mislead investors about the nature and characteristics of the fund, in contravention of the ASIC Act.

The regulator further alleged that Fiducian failed to act with the care and diligence required of a responsible entity under the Corporations Act. ASIC asserted that Fiducian did not adequately review underlying investments for consistency with stated ESG exclusions, failed to implement sufficient compliance and risk management controls to address ESG‑related risks, and lacked the necessary information to substantiate claims of active ESG monitoring and oversight.

Following court‑ordered mediation, Fiducian Group announced on 30 March 2026 that its subsidiary had entered into a heads of agreement with ASIC to resolve the proceedings. Under the agreement, Fiducian Investment Management Services Limited agreed to pay a financial penalty of AUD7.3 million to the Commonwealth and to pay ASIC’s investigation and legal costs, capped at AUD650,000.

The parties also consented to the making of court declarations acknowledging that the ESG and systems statements in the fund’s disclosures were liable to mislead the public and that Fiducian contravened its responsible entity obligations by failing to exercise appropriate care and diligence. The parties will now agree a statement of agreed facts and admissions, and a date for the conclusion of the proceedings will be set by the NSW Supreme Court.