ESG Enforcement Tracker

Key facts:

ASIC issued three infringement notices to Vanguard, an investment manager, for alleged breaches of section 12DF of the ASIC Act (engaging in conduct, in trade or commerce, that was liable to mislead the public as to the nature, the characteristics, or the suitablility for their purpose, of a financial service). The allegations were the same for each breach, but related to three different funds.

In each instance, the funds’ product disclosure statements stated that the index to which the particular investments were mirrored “excludes securities involved in the production, manufacturing or significant sales of tobacco”. However, the index did not exclude securities involved in the sale of tobacco.

Vanguard complied with the notices on 1 December 2022, paying (on a non-admission basis) the combined total of AU$39,960.