Fiducian Subsidiary Strikes ASIC Settlement Over Misleading ESG Fund Disclosures

Fiducian Group Ltd ( (AU:FID) ) has issued an update.

Fiducian Group’s subsidiary, Fiducian Investment Management Services Limited, has reached a heads of agreement with the Australian Securities and Investments Commission to resolve civil proceedings in the NSW Supreme Court concerning the Diversified Social Aspirations Fund. The case centres on allegations that product disclosure statements for the ESG-themed fund contained misleading environmental, social and governance claims and that Fiducian failed to exercise reasonable care and diligence as responsible entity.

Under the proposed settlement, which is still subject to court approval, Fiducian Investment Management Services will pay a $7.3 million pecuniary penalty to the Commonwealth and up to $650,000 towards ASIC’s investigation and legal costs. The parties will also seek court declarations reflecting the agreed contraventions and will lodge a statement of agreed facts and admissions, with the matter’s finalisation date to be set by the NSW Supreme Court, signalling a significant regulatory outcome in ASIC’s enforcement of ESG-related disclosures.

The most recent analyst rating on (AU:FID) stock is a Hold with a A$11.00 price target. To see the full list of analyst forecasts on Fiducian Group Ltd stock, see the AU:FID Stock Forecast page.

More about Fiducian Group Ltd

Fiducian Group Limited is an Australian financial services company listed on the ASX that provides investment management and related services through subsidiaries including Fiducian Investment Management Services Limited. The group operates managed funds such as the Diversified Social Aspirations Fund, with a focus on products incorporating environmental, social and governance considerations for retail and institutional investors.

Average Trading Volume: 22,853

Technical Sentiment Signal: Buy

Current Market Cap: A$315M

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