The Australian Securities and Investments Commission (ASIC) has commenced civil penalty proceedings in the Federal Court against Active Super. 

The corporate regulator alleges misleading conduct and misrepresentations were made to the market, relating to the super fund’s claims that it was ethical and responsible. 

Active Super said on its website that it eliminated investments that posed too great a risk to the environment and the community, including tobacco manufacturing, oil tar sands and gambling. Active Super also stated that they had added Russia to their list of excluded countries, following the invasion of Ukraine. 

But ASIC alleges Active Super exposed its members to investments it claimed to restrict or eliminate.   

“There is much competition among super funds for new members, and we know that funds seek to attract members with promises their investments will not be exposed to certain industries,” ASIC Deputy Chair Sarah Court said. 

“When making these claims super funds must have evidence to back their claims and ensure they are not promising exclusions that they cannot guarantee.” 

From 1 February 2021 to 30 June 2023, ASIC alleges that Active Super held 28 holdings, either directly or indirectly, which exposed members to securities it claimed to restrict.   

This is ASIC’s third greenwashing civil penalty proceeding after ASIC took action against Mercer Super and Vanguard Investments Australia.  

ASIC is seeking declarations, pecuniary penalties, adverse publicity orders and an injunction against Active Super from the court. 

Active Super says it has co-operated with ASIC’s investigation and welcomes increased scrutiny on Environmental, Social and Governance (ESG) disclosure standards “as being good for members, the super industry and the community”. 

“As the matter is before the courts we are unable to comment further,” a statement on its website says. 

The date for the first case management hearing is yet to be scheduled.