meta_id 3396783

On August 11, 2026, the Supreme Court of New South Wales ordered Fiducian Investment Management Services Limited (FIMS) to pay a $7.3 million penalty for breaching its duty to act with care and diligence as a responsible entity and engaging in conduct liable to mislead the public. The Australian Securities and Investments Commission (ASIC) brought proceedings against FIMS regarding its operation of the Diversified Social Aspirations Fund, which was established in 2015 to meet client demand for socially responsible or ethical investment options. The Court found that FIMS failed to act in accordance with its duty of care and diligence and made statements liable to mislead the public about the fund's environmental, social and governance (ESG) investment objectives. Between October 2019 and May 2024, the fund's underlying investments held positions in companies deriving revenue from fossil fuels, contradicting its stated ESG commitments. The Court identified significant governance and oversight failures, including FIMS's failure to adequately monitor underlying investments for alignment with ESG statements, review investment strategies of underlying funds, and amend stated objectives to reflect actual investments. Despite investor concerns raised from at least 2019, FIMS failed to appropriately amend or qualify its ESG statements. ASIC Chair Sarah Court said investors are entitled to accurate information about where their money is invested and that ESG claims must be backed by robust systems, oversight and governance. This represents ASIC's fourth greenwashing civil penalty outcome and the first against a managed fund operator for governance and compliance failures relating to ESG claims. It is also the first greenwashing-related civil penalty outcome concerning a responsible entity's failure to uphold its duty to act with care and diligence. The fund closed in 2024. FIMS admitted to failing to discharge its duties as a responsible entity and contravening provisions prohibiting false or misleading representations. REFERENCES: Australian Securities and Investments Commission. "Court orders Fiducian Investment Management Services to pay $7.3 million penalty over operation of ESG fund." Media Release 26-191MR. August 26, 2026. https://asic.gov.au/