ASIC sues Fiducian

ASIC has launched proceedings in the Supreme Court of NSW against Fiducian Investment Management, alleging it breached its duties as a responsible entity and engaged in misleading and deceptive conduct about its environmental, social and governance (ESG) fund.

- Eliza Bavin

ASIC is alleging Fiducian failed to act with care and diligence as the responsible entity of the Diversified Social Aspirations Fund in relation to its description of how the fund works in the Product Disclosure Statement (PDS).

The fund, which was available between 2015 and 2024, was established to meet client demand for a “socially responsible” and “ethical” investment option.

ASIC said Fiducian selected investments by using underlying fund managers or underlying investment funds, which had their own bespoke ESG methodologies and tolerance thresholds for choosing investments. ASIC has alleged these processes did not align with the approach outlined in the fund’s PDS.