Janice R. Andrews
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Vanguard Investments Australia has been hit with a A$12.9 million ($8.89 million) fine by Australia’s federal court for making deceptive claims about its ethical investment products. The court determined that the company’s “ethically conscious” bond index fund misrepresented its adherence to environmental, social, and governance (ESG) standards.
The Australian Securities & Investments Commission (ASIC) revealed that approximately 74% of the fund’s assets were not properly screened for ESG compliance, despite claims to the contrary in product disclosures, media statements, and on Vanguard’s website.
Vanguard has cooperated with ASIC since the issue was raised in 2021 and stated that no financial harm was suffered by investors.
